Question 13
Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis’s independent variable is production lot size (in 1,000’s of units), and his dependent variable is the total cost of the lot (in $100’s). Regression analysis of the data yielded the following tables.

Coefficients 
Standard Error 
t Statistic 
pvalue 














Intercept 
3.996 
1.161268 
3.441065 
0.004885 


x 
0.358 
0.102397 
3.496205 
0.004413 














Source 
df 
SS 
MS 
F 

S_{e} = 0.898 

Regression 
1 
9.858769 
9.858769 
12.22345 

r^{2} = 0.526341 

Residual 
11 
8.872 
0.806545 




Total 
12 
18.73077 




Louis’s regression model is _____________.
y = 0.358 + 3.996x 
y = 3.996 – 0.358x 
y = 0.358 + 3.996x 
y = 3.996 + 0.358x 
y = 3.996 + 0.358x 
Question 20
According to a study several years ago by the Personal Communications Industry Association, the average wireless phone user earns $62,600 per year. Suppose a researcher believes that the average annual earnings of a wireless phone user are lower now, and he sets up a study in an attempt to prove his theory. He randomly samples 18 wireless phone users and finds out that the average annual salary for this sample is $58,974, with a population standard deviation of $7,810. Use α = .01to test the researcher’s theory. Assume wages in this industry are normally distributed.
The value of the test statistic rounded to 2 decimal places is z = and we .
The tolerance is +/ 0.05.
A random sample of 51 items is taken, with and s^{2} = 25.68. Use these data to test the following hypotheses, assuming you want to take only a 1% risk of committing a Type I error and that x is normally distributed.
StartLayout 1st Row 1st Column Upper H Subscript 0 Baseline colon mu equals 60 EndLayout StartLayout 1st Row 1st Column Upper H Subscript a Baseline colon mu lessthan 60 EndLayout
Round your answer to 2 decimal places, the tolerance is +/0.01.
The value of the test statistic is and we .
Question 34
Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis’s independent variable is production lot size (in 1,000’s of units), and his dependent variable is the total cost of the lot (in $100’s). Regression analysis of the data yielded the following tables.

Coefficients 
Standard Error 
t Statistic 
pvalue 














Intercept 
3.996 
1.161268 
3.441065 
0.004885 


x 
0.358 
0.102397 
3.496205 
0.004413 














Source 
df 
SS 
MS 
F 

S_{e} = 0.898 

Regression 
1 
9.858769 
9.858769 
12.22345 

r^{2} = 0.526341 

Residual 
11 
8.872 
0.806545 




Total 
12 
18.73077 




Using α = 0.05, Louis should ___________.
not reject H_{0}: β_{1} = 0 
reject H_{0}: β_{1} = 0 
do not reject H_{0}: β_{0} = 0 
suspend judgment 
increase the sample size 