Question

Exercise 15-59 Static

A sociologist wishes to study the relationship between happiness and age. He interviews 24 individuals and collects data on age and happiness, measured on a scale from 0 to 100.

DATA:

Age	Happiness
49	62
51	66
41	67
65	71
84	87
41	60
83	86
18	78
36	59
61	63
15	77
86	90
73	70
32	62
84	93
23	72
52	58
72	73
63	63
30	66
72	78
47	60
88	95
69	72

a. Estimate: Happiness = β₀ + β₁Age + ε. (Round your answers to 2 decimal places.)

  Happiness = _______      +_________Age.

b-1. Choose the hypotheses to determine if age has an impact on happiness.

• H₀: β₁ ≥ 0; H_A: β₁ < 0

• H₀: β₁ ≤ 0; H_A: β₁ > 0

• H₀: β₁ = 0; H_A: β₁ ≠ 0

b-2. Calculate the value of the test statistic. (Round answer to 2 decimal places.)

b-3. Find the p-value.

• p-value < 0.01

• 0.01 ≤ p-value < 0.025

• 0.025 ≤ p-value < 0.05

• 0.05 ≤ p-value < 0.10

• p-value ≥ 0.10

c. At the 1% significance level, is Age significant in explaining Happiness?

• No, since we reject the null hypothesis.

• Yes, since we reject the null hypothesis.

• Yes, since we do not reject the null hypothesis.

• No, since we do not reject the null hypothesis.

Answer 1