When estimating a multiple regression model based on 30 observations, the following results were obtained.

Coefficients Standard Error fStat p-value Lower 95%

Upper 95%

Intercept 152.27 119.70 1.27 0.2142 − 93.34 397.87 X1 12.91 2.68 4.81 5.06E-05 7.40 18.41 x2 2.74 2.15 1.28 0.2128 − 1.67 7.14

a. Specify the hypotheses to determine whether x, is linearly related to y . At the 5% significance level, use the p -value approach to complete the test. Arex, and y linearly related?

b. What is the 95% confidence interval for β 2? Using this confidence interval, is x2 significant in explaining y ? Explain.

c. At the 5% significance level, can you conclude that β1 is less than 20? Show the relevant steps of the appropriate hypothesis test.