Use R for computations in this question.

The linear model function 1m() is ***NOT*** allowed.

• Question 2 ***MUST*** be answered properly in a .pdf file. (That is, the PDF file should

include answers to Question 1 and Question 2)

• In addition, all computations in Question 2 ***MUST*** be properly recorded in the file

Test4_supplementary. txt and ***MUST*** be reproducible by simply copying a block of

annotated R codes and running them in the R Console.

(a) Fit a simple linear regression model E(Y) = 3, + Biz to the data (amount of

money as a function of attendance).

(b) What is the expected attendance if the amount bet is 250 millions?

(c) Conduct a test of hypothesis

[2 marks]

* END **

[1 Marks]

H.: 3₁0 versus Ha: 31 0.

Do the data present sufficient evidence to indicate that the slope 3₁ differs from

0 at a significance level a = 0.05? Describe the process leading to the findings.

[2 marks]

(d) If appropriate (justify your answer), calculate a 95% confidence interval for the

slope 3₁ of the regression line. Provide a proper conclusion.

[3 Marks]