Question 2 of the self test : "Did Miller correctly interpret the results of the tests in making her reject or fail to reject decisions for hypothesis 1 and hypothesis 2? In this question, for the hypothesis 1 part, the t stat is calculated as 11.2/2=5.6 … shouldnt it be 11.2/3.5(the SE of the DOL) ? I hvent understood from where did the 2 come ? any clarification would be appreciated…
Read the hypothesis 1 agian: 2% increase in DOL–>11.2% increase in sales. so the COEFFIFCIENT is 11.2/2=5.6, not the T STAT.