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# statistics help? multiple choice...?

local realtor suspects that there is a linear relationship between appraised values and selling prices of houses in Stat City. He collected data on 10 recently sold housed in Stat City and used simple linear regression with appraised values (in thousands of $) as the independent variable and selling prices (in thousands of $) as the dependent variable. Thus, he computed that SSy = 28870 and s = 8.70.

Refer to Exhibit 11-13. What is the rejection region for testing, at the .05 level of significance, if there is a linear relationship between appraised values and selling prices of houses in Stat City?

Answer

a. t > 2.262

b. / t /> 1.860

c. / t / > 2.306

d. / t / > 2.262

e. None of these alternatives is correct.

### 1 Answer

- cidyahLv 79 years agoFavorite Answer
c. / t / > 2.306

You compare the test statistic with the t-critical value with 10-2=8 degrees of freedom (at 0.05 level).

This is a two-tailed test that tests whether the regression coefficient in the population is zero..