Back to 13.5 Interpretation of Regression Coefficients: Elasticity and Logarithmic Transformation

13.5 Exercise 3

Avg difficulty 2.5

The manufacturers of a chemical used in flea collars claim that under standard test conditions each additional unit of the chemical will bring about a reduction of 5 fleas (i.e. where Xj=amount of chemicalX_{j} = \text{amount of chemical} and YJ=B0+B1⋅XJ+EJY_{J} = B_{0} + B_{1} \cdot X_{J} + E_{J}, H0H_{0}: B1=−5B_{1} = −5

Suppose that a test has been conducted and results from a computer include:

Intercept = 60

Slope = −4

Standard error of the regression coefficient = 1.0

Degrees of Freedom for Error = 2000

95% Confidence Interval for the slope −2.04, −5.96

Is this evidence consistent with the claim that the number of fleas is reduced at a rate of 5 fleas per unit chemical?

OpenStax Introductory Business Statistics 2e, 13.5 Interpretation of Regression Coefficients: Elasticity and Logarithmic Transformation, exercise 3

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