In a simple linear regression based on 25 observations, it is found that b1 = 0.5 and

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In a simple linear regression based on 25 observations, it is found that b1 = 0.5 and se(bj) = 0.3. Consider the hypotheses: H0: β1 ≤ 0 and HA: β1 > 0.

a. At the 5% significance level, find the critical value(s).

b. Calculate the value of the test statistic.

c. What is the conclusion to the test?


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