The following data show the advertising expenses expressed


The following data show the advertising expenses (expressed as a percentage of total expenses) and the net operating profits (expressed as a percentage of total sales) in a random sample of six drugstores:

(a) Fit a least squares line that will enable us to predict net operating profits in terms of advertising expenses.

(b) Test the null hypothesis α = 0.8 against the alternative hypothesis α > 0.8 at the 0.01 level of significance.

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Basic Statistics: The following data show the advertising expenses expressed
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