Question: In a simple linear regression based on 25 observations, it is found that b1 = 0.5 and Consider the hypotheses: H0: 1 0 and

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

H0: β1 ≤ 0 and HA: β1, > 0.

a. Calculate the value of the appropriate test statistic.

b. At the 5% significance level, what is the critical value?

c. What is the conclusion to the test?

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