In: Statistics and Probability
If you pay more in tuition to go to a top businessschool, will it necessarily result in a higher probability of a job offer at graduation? Let y=percentage of graduates with job offers and x=tuition cost; then fit the simple linear model, E(y)=β0+β1x, to the data below. Is there sufficient evidence (at α=0.05) of a positive linear relationship between y and x?
School |
Annual tuition ($) |
% with Job Offer |
---|---|---|
1 |
39,746 |
95 |
2 |
39,493 |
94 |
3 |
38,992 |
89 |
4 |
38,869 |
89 |
5 |
38,848 |
85 |
6 |
38,277 |
86 |
7 |
37,838 |
91 |
8 |
37,663 |
92 |
9 |
37,573 |
86 |
10 |
37,013 |
87 |
Give the null and alternative hypotheses for testing whether there exists a positive linear relationship between y and x?
A.H0: β0=0
Ha:β0≠0
B.H0: β1=0
Ha:β1≠0
C.H0: β0=0
Ha: β0>0
D.H0: β0=0
Ha: β0<0
E.H0: β1=0
Ha: β1<0
F.H0: β1=0
Ha:β1>0
Find the test statistic.
t=_________
(Round to two decimal places as needed.)
Find the p-value.
p-value=_________
(Round to four decimal places as needed.)
Make the appropriate conclusion at α=0.05.
Choose the correct answer below.
A.Reject H0. There is sufficient evidence that there exists a positive linear relationship between y and x.
B.Do not reject H0. There is sufficient evidence that there exists a positive linear relationship between y and x.
C.Do not reject H0. There is insufficient evidence that there exists a positive linear relationship between y and x.
D.Reject H0. There is insufficient evidence that there exists a positive linear relationship between y and x.
from above:
F.H0: β1=0
Ha:β1>0
test statistic t =1.60
p value =0.0741 (please try 0.0744 if this comes wrong)
C.Do not reject H0. There is insufficient evidence that there exists a positive linear relationship between y and x.