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?


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  • CreatedSeptember 11, 2015
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