In a simple linear regression based on 30 observations, it is found that b1 = 3.25 and se(bj) = 1.36. Consider the hypotheses: H0: β1 = 0 and HA: β1 ≠ 0.
a. Calculate the value of the test statistic.
b. Approximate the p-value.
c. At the 5% significance level, what is the conclusion? Is the explanatory variable significant?