(f) Formulate a hypothesis test to determine whether there is a significant linear relationship between food expenditure and income. At what levels of significance would the null hypothesis be rejected? Exercise 3 The growing interest in and use of the internet has forced many companies to consider ways to sell their products on the web. Therefore such companies are interested in determining who is using the web. A statistics practitioner undertook a study to determine how education and internet use are connected. He took a random sample of 200 adults (20 years of age and older) and asked each to report the years of education they had completed the number of hours of internet use in the previous week. Data is available in Excel file Exercises2-4.xIsx in worksheet Exercise 3. (a) Use Excel to produce a scatter plot of the data. Comment on whether linear regression will supply a suitable model of the relationship. (b) Obtain a regression output for this data, and state the equation of the regression line. (c) From the output, write down the equation of the regression line. (d) Interpret the slope. (e) Interpret the coefficient of determination. (f) Can we conclude that a significant linear relationship exists between years of education and hours of internet use? At what significance level? Exercise 4 in order to determine a realistic price for a new product that a company wishes to market, the company's research department selected 10 sites thought to have essentially identical sales potential and offered the product in each at a different price. The resulting sales are recorded in the following table and also in in Excel file Exercises2-4.xlsx in worksheet Exercise 4. Location Price(x) Sales ($000s) (y) 15.00 15 15.50 14 16.00 16 16.50 17.00 12 ONOUTAWN 17.50 10 18.00 18.50 19.00 10 19.50 (a) Use Excel to find the graph of the scatter plot, the regression output, and the graph of the regression line. (b) From the output write down the equation of the regression line. (c) Interpret the slope. (d) Interpret the coefficient of determination. (e) Is there sufficient evidence at the 0.5% significance level to allow us to conclude that significant linear relationship exists between price and sales? Exercise 5 Reproduce scatterplot and Excel Summary Table for question 2. Data are available in Excel file Manatee.xIsx