14-59. Susan decides to run a pizza franchise in her hometown.
To determine the cost of the initial investment for her startup, she hired an analyst to help her to analyze the startup cost (all figures in $thousands) and the annual franchise fee ($ 000) for the pizza shop. The analyst collected data from 15 different pizza franchises and listed those in the following table:
Annual
Franchise
Fee ($ 000)
Startup Cost
($ 000)
Annual
Franchise
Fee ($ 000)
Startup
Cost ($ 000)
1,000
1,050
1,100
1,250
1,125
1,150
1,350
1,830
1,087
1,213
1,275
1,350
1,070
1,275
1,375
1,450
1,100
1,300
1,175
1,300
1,150
1,300
1,200
1,300
1,250
1,400
1,175
1,275
1,150
1,400


a. Determ in expl on airli interva
b. Assum income interce
14-62. One of the tunnel syn ergonomic
Ten admir both stand typing spe
Ergonomic
69
Standard
70
a. Produc admini standar relatior your re
b. Calcula speeds and sta
c. Condu correla admini standar
14-63. A compan a particula emphasis ( company i grading sta school mig from anoth student. Tc company I 400 studer a regressio The follow
a. Draw a scatter plot for these data and comment on it.
b. Compute the correlation coefficient value for the startup cost and annual franchise fee. Interpret your finding.
c. Construct a hypothesis test, at 1% significance level, to determine whether the startup cost will be influenced by the annual franchise fee. Write a conclusion for Susan to help her make her decision.