Suppose you used Excel to estimate the following model: ATMTime = 0 + 1 Age + 2

Question

Suppose you used Excel to estimate the following model:

ATMTime= 0 + 1Age+ 2Gender+

Where, ATMTime = time it takes to complete an ATM transaction in seconds, Age = age of the customer in years, Gender = dummy variable that is 1 if the customer is male and 0 if the customer is female.

Suppose the 95% confidence interval around the parameter estimate for 1 was calculated and had lower limit of 0.025 and an upper limit of 0.500.

Does Age significantly affect ATMTime at the 0.025 significance level?

Select one:

a. Yes

b. No

c. More information is required to answer this question

Please Help!!

Explanation / Answer

a. Yes.

Age significantly affect ATMTime at the 0.025 significance level.

If the confidence interval for 1 contains 0, then we conclude that there is no evidence of a relationship between the predictor x and the response y in the population. On the other hand, if the confidence interval for 1 does not contain 0, then we conclude that there is evidence of a relationship between the predictor x and the response y in the population.

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