Question

Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the manufacturing costs of a moldedi plastic telephone handset produced by PPI. Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's). Regression analysis of the data yielded the following tables. Coefficients Standard Error Ip-value Statistic 3.441065 3.996 Intercept 1.161268 0.004885 0.358 0.102397 0.004413 3,496205 df MS Se 0.898 Source Regression 9.858769 9.858769 r2 0.526341 12.22345 Residual 0.806545 8.872 11 Total 12 18.73077 Using a 0.05, Louis should A. increase the sample size B. suspend judgment C.not reject HO: B1 = 0 D. reject H0: B1 = 0 E. do not reject HO: B0 = 0

Answer 1

Option D

reject H₀ : β₁ = 0

Because p value = 0.004413 of β₁ < 0.05, So we reject H₀