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Using a 5% significance level, the decision regarding test of hypothesis about t

ID: 1128162 • Letter: U

Question

Using a 5% significance level, the decision regarding test of hypothesis about the slope (H0: 1=0; Ha: 1 0) is:

a. Reject H0 and conclude that slope is significant.

b. Fail to reject Ha and conclude slope is not significant.

c. Fail to reject H0 and conclude that slope is not significant.

d. Reject H0 and conclude that slope is not significant.

SUMMARY OUTPUT Regression Statistics Multiple R 0.854 R Square 0.730 Adjusted R Square 0.676 Standard Error 2.173 Observations ANOVA Regression Residual Total a un Ps df ss MSF significance F 63.81 63.81 13.51 0.01 23.62 4.72 87.43 Intercept Coefficien. Standard Error t Stat 4.87 3.48 0.88 0.24 3.68 P-value 0.220 0.014 Lower 95% -4.06 0.26 Upper 95% 13.81 1.49

Explanation / Answer

The correct answer is: a. Reject H0 and conclude that slope is significant.

Reason: We reject Ho when the p-value is less than the level of significance.

Here, the p-value of 1 is 0.014 or 1.4% which is less than the 5% level of significance. Hence, we reject the null hypothesis H0: 1=0 and conclude that the slope is significant.

Thanks!

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