At the 5% significance level, can we conclude the the dependent variable and the

Question

At the 5% significance level, can we conclude the the dependent variable and the independent variable are related?

a.

Yes. The pvalue is not less than the level of significance, so we do not reject H0. The two variables are related.

b.

Yes. The pvalue is not less than the level of significance, so we do not reject H0. The two variables are related.

c.

Yes. The pvalue is not less than the level of significance, so we reject H0. The two variables are related

d.

No. The pvalue is not less than the level of significance, so we do not reject H0. The two variables are not related.

Consider the following regression results based on 20 observations.

Explanation / Answer

Consider the following regression results based on 20 observations.

At the 5% significance level, can we conclude the the dependent variable and the independent variable are related?

AnsNo. The pvalue is not less than the level of significance, so we do not reject H0. The two variables are not related (option D is correct)

Coefficients Standard Error t Stat p-value Lower 95% Upper 95%   Intercept 34.2123     4.5665         7.4920 0.0000 24.62        43.81         x1 0.1223     0.1794         0.6817 0.5041 0.25        0.50      

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