Question

The owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. The owner collects data on temperature and sales for a random sample of 30 days and runs a regression to determine if there is a relationship between temperature (in degrees) and ice cream sales. The p-value for the two-sided hypothesis test is 0.04.
A. How would you interpret the p-value?
1)If there is no relationship between temperature and sales, the chance of selecting a sample this extreme would be 4%.2)If there is a relationship between temperature and sales, the chance of seeing a regression coefficient this large would be 4%.3)There is a 4% chance that there is a relationship between temperature and revenue.4)There is a 4% chance that there is no relationship between temperature and revenue.

Answer 1

Answer:

4)There is a 4% chance that there is no relationship between temperature and revenue.

Step-by-step explanation:

Given that the owner of an ice cream shop wants to determine whether there is a relationship between ice cream sales and temperature. The owner collects data on temperature and sales for a random sample of 30 days and runs a regression to determine if there is a relationship between temperature (in degrees) and ice cream sales

A) The p value is the probability of rejecting null hypothesis when it is true.

In this case null hypothesis would have been there is no relationship between temperature and Sales.

The probability of concluding that there is relationship between temperature and sales when there is actually no real realtionship is only 0.04.

4)There is a 4% chance that there is no relationship between temperature and revenue.

is right answer