A collctor of antique grandfather clocks knows that the price received for the clocks increases linearly with the age of the clocks moreover the collector hypothesizes that the auction price of the clocks will increase linearly as the number of bidders increases Thus the following model is hypothesized.
asample of 32 auction prices of grandfather clocks along with their age and the number of bidders is given in table 13.2 the model y= is fit to the data and a portion of the SAS printour is shown in figure 13.6 test the hypothesis that the mean auction price of a clock increases as the number of bidders increases when age is held constant that is.
the hypotheses of interest concern the parameter = specifically.
this rejection region is shown in figure 13.7 the calculated t-value,t=9.857exceeds1.699 and therefore falls in the rejection region Thus the collector can conclude that the mean auction price of a clock increases as the number of bidders increases when age is held constant.