In an attempt to determine whether or not a linear relationship exists between the price of a home (in $1,000s) and the number of days it takes to sell the home, a real estate agent collected data from recent sales in his city and estimated the following model: Price = β₀ + β₁ Days + ε. A portion of the regression results is shown in the accompanying table.

Specify the hypotheses to determine whether Days is significant in explaining a house’s price. At the 5% significance level, what is the conclusion to the test? Explain.

Transcribed Image Text:

p-value t Stat Coefficients Standard Error Intercept - 384.9281 574.6456 -0.670 0.528 5.3154 1.0242 5.190 0.002 Days