Question

In order to examine the relationship between the selling price of a used car and its age, an analyst uses data from 25 recent transactions and estimates Price Bo+ B1Age+ E. A portion of the regression results is shown in the accompanying table. [You may find it useful to reference the ttable.] 3 Standard Error 745.43 120.93 t Statp-value 28.456 1.98E-19 Coefficients 21,211.93 -1,206.24 Intercept Age Skipped 8.01E-10 a. Specify the competing hypotheses in order to determine whether the selling price of a used car and its age are linearly related. eBook b. Calculate the value of the test statistic. (Negative value should be indicated by a minus sign. Round your answer to 3 decimal places.) est statistic c-1. Find the p-value. p-value 2 0.10 0.05 s p-value < 0.10 0.02 s p-value <0.05 0.01 s p-value < 0.02 < Prev 3of 6 Ill Next臼

need answer for this question

Answer 1

a) $H_{0}: \beta=0 \;\;\;vs \:\:\: H_{1}: \beta\neq 0$

is the hypothesis to determine whether the selling price of a used car and age are linearly related.

b) Value of T statistic = 28.456