# Question

Refer to the previous exercise. Of the 100 homes, 25 were in a part of town considered less desirable. For a regression analysis using y = selling price and x = size of house for these 25 homes,

a. You plan to test H0: β = 0 against Ha: β > 0. Explain what H0 means, and explain why a data analyst might choose a one-sided Ha for this test.

b. For this one-sided alternative hypothesis, how large would the t test statistic need to be in order to get a P-value equal to

(i) 0.05 and

(ii) 0.01?

a. You plan to test H0: β = 0 against Ha: β > 0. Explain what H0 means, and explain why a data analyst might choose a one-sided Ha for this test.

b. For this one-sided alternative hypothesis, how large would the t test statistic need to be in order to get a P-value equal to

(i) 0.05 and

(ii) 0.01?

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