A fire insurance company wants to examine the relationship between the amount of

Question

A fire insurance company wants to examine the relationship between the amount of fire damage in major residential fires to the distance between the burning house and the nearest fire station. A sample of 15 recent fires in a particular city was taken. The amount of damage to the house (in thousands of dollars) and the distance from the burning house to the nearest fire station (in miles) was recorded. Part of the output from a simple linear regression analysis is? Provided. Assume all conditions are met for simple linear regression inference. In statistical notation, what is the correct null hypothesis to determine if the distance the burning house is to the nearest fire station is a significant predictor of damage to a burning house? Click the icon to view the regression analysis. Choose the correct answer below. H0: beta1 = 0 H0: beta 0 =0 H0: beta 0 = 0 H0: beta1 0 H0: beta1 = 3. 554

Explanation / Answer

The correct null hypothesis assumes no correlation, or in terms of slope, that B1 = 0.

Thus,

OPTION A: Ho: B1 = 0 [ANSWER, A]

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