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QUESTION 17 versus Use the given set of points to test the null hypothesis Ho: B, = 0 H:B, +0. Use the a = 0.01 level of sign

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Answer #1

ΣX = 90
ΣY = 218
ΣX * Y = 2677
ΣX2 = 1108
ΣY2 = 6476

Standard Error of Estimate S = √ ( Σ (Y - Ŷ ) / n - 2) = √(7.7487 / 6) = 1.136

Equation of regression line becomes Ŷ = 0.804 + 2.351 X

To Test :-
H0 :- ß = 0
H1 :- ß ≠ 0

Test Statistic :-
t = ( b - ß) / ( S / √(S(xx)))
t = ( 2.3508 - 0 ) / ( 1.1364 / √(95.5))
t = 20.215

Test Criteria :-
Reject null hypothesis if |t| > t(α, n-2)
t(α/2,n-2) = t(0.01/2 , 8 - 2 ) = 3.707
| t | > t(α/2, n-2) = 20.216 > 3.707
Result :- Reject null hypothesis

Test statistic is 20.215. Reject Ho.

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