Emily Smith decides to buy a fuel-efficient used car. Here are several vehicles she is considering, with the estimated cost to purchase and the age of the vehicle. Y X Vehicle Estimated Cost ($) Age (Years) Honda Insight 9312 8 Toyota Prius 13815 5 Toyota Prius 510 10 Toyota Echo 15173 3 Honda Civic Hybrid 6574 7 Chevrolet Prizm 5156 12 Mazda Protégé 13492 4 Toyota Corolla 15803 3 Acura Integra 14225 5 Scion xB 14570 6 Scion xA 11840 12 Mazda 3 18029 3 Mini Cooper 18500 3 Conduct the hypothesis test to determine whether the regression slope coefficient is equal to 0. Test using a significance level of 0.1. d. What are the null and alternate hypotheses? H0: 0 H1: 0 e. Compute the value of the test statistic? (Round your answer to 2 decimal places. Negative values should have a minus sign in front of them) f. Determine the p-value (Round your final answer to 4 decimal places.) g. What is your decision regarding the null hypothesis? multiple choice Reject the null. Fail to reject the null. h. Interpret the result.

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Emily Smith decides to buy a fuel-efficient used car.  Here are several vehicles she is considering, with the estimated cost to purchase and the age of the vehicle.

 

  Y X
Vehicle Estimated Cost ($) Age (Years)
Honda Insight 9312 8
Toyota Prius 13815 5
Toyota Prius 510 10
Toyota Echo 15173 3
Honda Civic Hybrid 6574 7
Chevrolet Prizm 5156 12
Mazda Protégé 13492 4
Toyota Corolla 15803 3
Acura Integra 14225 5
Scion xB 14570 6
Scion xA 11840 12
Mazda 3 18029 3
Mini Cooper 18500 3

 

Conduct the hypothesis test to determine whether the regression slope coefficient is equal to 0. Test using a significance level of 0.1.

 

d. What are the null and alternate hypotheses? 

H0:                                              0

H1:                                              0

 

e. Compute the value of the test statistic?  (Round your answer to 2 decimal places. Negative values should have a minus sign in front of them)



f. Determine the p-value (Round your final answer to 4 decimal places.)

 

g. What is your decision regarding the null hypothesis?

multiple choice 

  • Reject the null.
  • Fail to reject the null.

 

h. Interpret the result. 

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