Consider the following regression results based on 20 observations. [You may find it useful to reference the t table.] Coefficients Standard Error t Stat p-value Intercept 32.7486 4.4840 7.303 0.000 x1 0.3112 0.1486 2.094 0.051 a-1. Choose the hypotheses to determine if the intercept differs from zero. H0: β0 ≥ 0; HA: β0 < 0 H0: β0 ≤ 0; HA: β0 > 0 H0: β0 = 0; HA: β0 ≠ 0 a-2. At the 5% significance level, what is the conclusion to the hypothesis test? Does the intercept differ from zero? Reject H0; the intercept is greater than zero. Reject H0; the intercept differs from zero. Do not reject H0; the intercept is greater than zero. Do not reject H0; the intercept differs from zero. b. At the 5% significance level, can we conclude the slope differs from zero? Yes, since the p-value is less than the significance level. No, since the p-value is less than the significance level. Yes, since the p-value is not less than the significance level. No, since the p-value is not less than the significance level.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Coefficients | Standard Error | t Stat | p-value | |
Intercept | 32.7486 | 4.4840 | 7.303 | 0.000 |
x1 | 0.3112 | 0.1486 | 2.094 | 0.051 |
a-1. Choose the hypotheses to determine if the intercept differs from zero.
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H0: β0 ≥ 0; HA: β0 < 0
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H0: β0 ≤ 0; HA: β0 > 0
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H0: β0 = 0; HA: β0 ≠ 0
a-2. At the 5% significance level, what is the conclusion to the hypothesis test? Does the intercept differ from zero?
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Reject H0; the intercept is greater than zero.
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Reject H0; the intercept differs from zero.
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Do not reject H0; the intercept is greater than zero.
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Do not reject H0; the intercept differs from zero.
b. At the 5% significance level, can we conclude the slope differs from zero?
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Yes, since the p-value is less than the significance level.
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No, since the p-value is less than the significance level.
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Yes, since the p-value is not less than the significance level.
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No, since the p-value is not less than the significance level.
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