The scatterplot to the right is from the regression of y on x. The output below

Question

The scatterplot to the right is from the regression of y on x. The output below summarizes the fit of an analysis of covariance to the data from the scatterplot. The variable D denotes a dummy variable, with D = 1 for values colored green and 0 otherwise. Complete parts a through c below. Term | Estimate Std Error | t-Statistic | p-value | Intercept | 6.3762| 0.2932 | 21.75-00001 12.5 10 0 7.5 2.5 . 2.0183 0.1893 1066 0.0001 9.34 0.0001 253 21 023 -7.11170.76189 Dx0.1707 0.3663 0.47 0.6475 (a) Does the fit of the model suggest parallel equations for the two groups? 0 A. Yes because the coefficient of the interaction is not statistically significant. O B. No because the coefficient of the interaction is not statistically significant ° C. No because the coefficient of the interaction is statistically significant. 0 D. Yes because the coefficient of the interaction is statistically significant.

Explanation / Answer

Here from the graph, we see that there are 2 distinct plots for D =0 and D = 1. As they are not intersecting in the given plot and also as the p-value for Dx > 0.05 which is the level of significance, this suggest that the interaction term is not statistically signficant.

Therefore A is the correct answer here .

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