Kathleen Davis is a financial analyst studying the durability of MotorGo\'s new

Question

Kathleen Davis is a financial analyst studying the durability of MotorGo's new product of hybrid cars. In particular, she would like to study how the maintenance costs of this type of car relates to the distance driven. To facilitate the analysis, Davis asks her junior assistant, Brandon Larkin, to collect data for her and conduct statistical tests. Larkin collects data from use of these new cars. Larkin defines the dependent variable as Costs, or maintenance costs (in thousands of EUR) for the last calendar year for a given car. Larkin defines the independent variable as Odometer, or the distance driven (in thousands of kilometers) at the end of the last completed calendar year Coefficients Standard Error t-statistic p-value 0.8919 5.07290 19.34640 Intercept-4.5243 Odometer 0.1223 0.006323 Which of the following best describes a valid statistical inference based on the results shown in Exhibit 1? A ) The slope coefficient is statistically different from 0 at the 1% significance level. B ) The intercept coefficient is not statistically different from 0 at the 1% significance level C A1 unit increase in the odometer reading causes an expected 0.1223 unit increase in annual maintenance costs

Explanation / Answer

here as we can see that p value for odometer is les than 1% level of significance ; tehrefore

option A is correct.

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