Suppose the researchers test the hypotheses H 0 : 1 = 0, H a : 1 > 0. The P -val

Question

Suppose the researchers test the hypotheses H0: 1 = 0, Ha: 1 > 0.

The P-value of the test is:

a. greter than 0.10

b- between 0.10 and 0.05

c-less than 0.01

d- between 0.05 and 0.01

A random sample of 79 companies from the Forbes 500 list (which actually consists of nearly 800 companies) was selected, and the relationship between sales (in hundreds of thousands of dollars) and profits (in hundreds of thousands of dollars) was investigated by regression. The following simple linear regression model was used

Profitsi = 0 + 1(Sales)i + i

where the deviations i were assumed to be independent and Normally distributed, with mean 0 and standard deviation . This model was fit to the data using the method of least squares. The following results were obtained from statistical software:

R2 = 0.662
s = 466.2 Variable Parameter Estimate S.E. of Parameter Estimate Constant –176.644 61.16 Sales 0.092498 0.0075 Reference: Ref 10-3

Suppose the researchers test the hypotheses H0: 1 = 0, Ha: 1 > 0.

The P-value of the test is:

a. greter than 0.10

b- between 0.10 and 0.05

c-less than 0.01

d- between 0.05 and 0.01

Explanation / Answer

fro baove test statsitic for slope =b1/seb1 =0.092498/0.0075 =12.33307

for above one tailed test and (n-2=77) degree of freedom ; p value =0.0000

option C is correct - less then 0.01

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