Exercise 15-9 Algo In order to examine the relationship between the selling pric

Question

Exercise 15-9 Algo In order to examine the relationship between the selling price of a used car and its data from 20 recent transactions and estimates Price-Po + ?| Age + ?. A portion of the regression results is shown in the accompanying table age, an analyst uses Intercept21,232.95 Age 731.44 128.96 26.83 574E+16 -120424 2.41E+08 a. Specify the competing hypotheses in order to determine whether the selling price of a used car and its age are linearly related b. Calculate the value of the test statistic (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Test statistic C-1. At the 5% significance level, find the critical value(s) (Round your answer to 2 decimal places.) Criticat value(s) so nllianin explaining its selling price? gnificant in (Click to select) we Click to setect) CO

Explanation / Answer

(a) Hypotheesis of option B is correct here.

(b) Test statistic

t = -1204.24/128.96 = -9.338

c-1

Critical value at 5% signifance level where n = 20

dF = 20 - 2 = 18

tcritical = 2.1010

c-2.

We reject the null hypothesis and can conclude that the age of used car is significant.,

d-1

Test statistic

t = (-1204.24 + 1000)/128.96 = -1.58

so here as l t l < tcritical so we failed to reject the null hypothesis. And say that the linear coefficient is not differs from -1000.

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