Conduct a hypothesis for whether consumption and income are linearly related using ? =0.01. The standard error of the slope is 0.144.  Slope = 0.75, Intercept = 0, sample: Income 9, 11, 5, 8, 2, 9, 12 Consumption 7, 7, 2, 7, 2, 8, 9 Step 1: State the null and alternative hypotheses. Step 2: Choose the significance level. Step 3: Calculate the test statistic. Step 4: Find the critical value(s). Step 5: Compare the test statistic to the critical value(s). Step 6: State the conclusion.

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Conduct a hypothesis for whether consumption and income are linearly related using ? =0.01. The standard error of the slope is 0.144.  Slope = 0.75, Intercept = 0, sample:
Income 9, 11, 5, 8, 2, 9, 12
Consumption 7, 7, 2, 7, 2, 8, 9


Step 1: State the null and alternative hypotheses.
Step 2: Choose the significance level.
Step 3: Calculate the test statistic.
Step 4: Find the critical value(s).
Step 5: Compare the test statistic to the critical value(s).
Step 6: State the conclusion.

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