Multiple Choice: In testing the hypotheses H 0 : B 1 = 0 vs. H a : B 1 0 with al

Question

Multiple Choice: In testing the hypotheses H0: B1 = 0 vs. Ha: B1 0 with alpha = 0.05, the calculated value of our test statistic is T = 3.45. The critical value from our t-table is t0.025 = 2.306. What conclusion should be made?

Do not reject H0, there is evidence that X contributes information to the prediction of Y.

Reject H0, there is evidence that X contributes information to the prediction of Y.

Do not reject H0, there is not evidence that X contributes information to the prediction of Y.

Reject H0, there is not evidence that X contributes information to the prediction of Y.

Explanation / Answer

Here as the test statistic value is greater than the critical value, therefore the test is significant and we can reject the null hypothesis here.

Reject H0, there is evidence that X contributes information to the prediction of Y. This is the correct answer here.

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