Question: A researcher has estimated a linear model to study the effect of weekly household income x subscript i (in $100) on weekly household expenditure on

A researcher has estimated a linear model to study the effect of weekly household income x subscript i (in $100) on weekly household expenditure on food y subscript i (in $). Using a sample of size N = 40, she found that stack y subscript i with hat on top equals stack 83.42 with left parenthesis 43.41 right parenthesis below plus stack 10.21 with left parenthesis 2.09 right parenthesis below x subscript i comma space R squared equals 0.384 and begin inline style sum from i equals 1 to N of left parenthesis y subscript i minus top enclose y right parenthesis squared equals 500 comma 000 end style and the sample mean of x subscript i is 19.605. Consider a hypothesis testing against H0: the slope coefficient is 3.94. - For this testing, the t-ratio is: h. Therefore we, at the 5% significance level, a. do not reject H0. b. 4.89 c. 5 d. accept H1. e. 4 f. re-estimate the regression model using different data. g. 3 h. reject H0. i. 2 j. cannot do anything unless the significance level is 10%.

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