In: Statistics and Probability
test the hypothesis that the true slope of the regression line is zero (as opposed to nonzero). State the appropriate null and alternative hypotheses, give the value of the test statistic and give the appropriate P-value. (Use a significance level of 0.05.) Explain precisely what this means in terms of the relationship between the two variables. Data
x y
77.5 45 80 73 78 43 78.5 61 77.5 52 83 56 83.5 70 81.5 70 75.5 53 69.5 51 70 39 73.5 55 77.5 55 79 57 80 68 79 73 76 57 76 51 75.5 55 79.5 56 78.5 72 82 73 71.5 69 70 38 68 50 66.5 37 69 43 70.5 42 63 25 64 31 64.5 31 65 32 66.5 35 67 32 66.5 34 67.5 35 75 41 75.5 51 71.5 34 63 19 60 19 64 30 62.5 23 63.5 35 73.5 29 68 55 77.5 56
Solution: We can use the excel regression data analysis tool to find the test statistic and the p-value. The excel output is given below:
SUMMARY OUTPUT | ||||||
Regression Statistics | ||||||
Multiple R | 0.842883361 | |||||
R Square | 0.71045236 | |||||
Adjusted R Square | 0.704017968 | |||||
Standard Error | 8.399174148 | |||||
Observations | 47 | |||||
ANOVA | ||||||
df | SS | MS | F | Significance F | ||
Regression | 1 | 7789.339207 | 7789.339207 | 110.4148393 | 0.00000 | |
Residual | 45 | 3174.575687 | 70.54612638 | |||
Total | 46 | 10963.91489 | ||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
Intercept | -98.24168878 | 13.88043618 | -7.07770905 | 0.0000 | -126.1983219 | -70.28505564 |
x | 2.005686407 | 0.190875114 | 10.50784656 | 0.0000 | 1.621244199 | 2.390128615 |
regression line is zero (as opposed to nonzero). State the appropriate null and alternative hypotheses, give the value of the test statistic and give the appropriate P-value. (Use a significance level of 0.05.) Explain precisely what this means in terms of the relationship between the two variables.
The null and alternative hypotheses are:
From the excel output, we have:
The test statistic is:
The p-value is:
Since the p-value is less than the significance level 0.05, we, therefore, reject the null hypothesis and conclude that there is a significant relationship between the two variables.