Based on Exhibit 2, Vasileva should reject the null hypothesis that:

A. the slope is less than or equal to 0.15.

B. the intercept is less than or equal to zero.

C. crude oil returns do not explain Amtex share returns.

Elena Vasileva recently joined EnergyInvest as a junior portfolio analyst. Vasileva’s supervisor asks her to evaluate a potential investment opportunity in Amtex, a multinational oil and gas corporation based in the United States. Vasileva’s supervisor suggests using regression analysis to examine the relation between Amtex shares and returns on crude oil.
Vasileva notes the following assumptions of regression analysis:
■ Assumption 1. The error term is uncorrelated across observations.
■ Assumption 2. The variance of the error term is the same for all observations.
■ Assumption 3. The dependent variable is normally distributed.
Vasileva runs a regression of Amtex share returns on crude oil returns using the monthly data she collected. Selected data used in the regression are presented in Exhibit 1, and selected regression output is presented in Exhibit 2. She uses a 1 percent level of significance in all her tests.

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Exhibit 1: Selected Data for Crude Oil Returns and Amtex Share Returns Month 1 1 Month 36 Sum Average Oil Return (X;) -0.032000 B 0.028636 -0.018056 Amtex Return (Y;) 0.033145 0.062334 0.005293 Cross-Product (X; -X) (Y;-) -0.000388 1 0.002663 0.085598 Predicted Amtex Return (8) 0.002011 : 0.016282 Regression Residual (Y; - ) -0.031134 E -0.046053 Squared Residual (Y-8;) 0.000969 0.002121 0.071475