In order to examine the relationship between the selling price of a used car and its age, an analyst uses data from 20 recent transactions and estimates Price = β0 + β1Age + . A portion of the regression results is shown in the accompanying table.

a. Specify the competing hypotheses in order to determine whether the selling price of a used car and its age are linearly related.
b. Calculate the value of the test statistic.
c. At the 5% significance level, what is the conclusion to the test? Is the age of a used car significant in explaining its selling price?
d. Conduct a hypothesis test at the 5% significance level in order to determine if β1 differs from 21000. Show all of the relevantsteps.

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Intercept 21187.947 Age Coefficients Standard Error t Stat p-value 28.89 156E-16 2.41E-08 733.42 28.95 208.25