The following table shows the assessed values and the selling prices of eight houses, constituting a random sample of all the houses sold recently in a metropolitan area:

(a) Fit a least squares line that will enable us to predict the selling price of a house in that metropolitan area in terms of its assessed value.
(b) Test the null hypothesis β = 1.30 against the alternative hypothesis β > 1.30 at the 0.05 level of significance.

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Assessed value (thousands) (of dollars) Selling price (thousands) (of dollars) 170.3 202.0 162.5 174.8 157.9 181.6 210.4 188.0 214.4 269.3 206.2 225.0 199.8 232.1 274.2 243.5 6