A certain firm provides expense accounts for its executives. Using the following data, the firm’s human resources department ran a regression analysis to determine whether a relationship exists between annual salary and amount claimed in expenses each year.

The regression results were

(a) Test the hypothesis that there is no relationship between annual salary and expenses claimed, using the t-test on the regression coefficient

b. Use α = .05.

(b) Repeat the test of part (a), but use the t-test on r.

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x (salary in $ 1,000 s) y (expenses in $ 1,000 s) 40 0.8 38 1.6 22 0.6 25 0.9 30 1.2 35 2.2 40 1.1