Question

The output to the right shows the regression of the 2006 cost of living index on the 2007 index for the most expensive cities in the world. The 2007 index is the response variable. Complete parts a through d below. Predictor Intercept Index 2006 s 3.01 Coeff 12.65 2.142 R-Sq-88.3% SE(Coeff) t-ratio 14.460.87 0.276 7.76 P-value 0.4001 <0.0001 a) State the hypotheses about the slope B Ho. There is linear relationship between the index in 2006 and 2007 (Pn 0) HA: There islinear relationship between the index in 2006 and 2007 (P10)

Answer 1

a) Ho: There is no linear relationship between the index in 2006 and 2007. ( $\beta_1 = 0$ )

Ha: There is a linear relationship between the index in 2006 and 2007. ( $\beta_1 \neq 0$ )