A sociologist wishes to study the relationship between happiness and age. He interviews 24 individuals and collects data on age and happiness, measured on a scale from 0 to 100. He estimates the following model: Happiness = β₀ + β₁Age + ε. The following table summarizes a portion of the regression results. At the 1% significance level, which of the following is correct for the test about the population slope? A) Do not reject the null hypothesis. At 1% significance level, we cannot conclude that Age is significant in explaining Happiness. B) Do not reject the null hypothesis. At 1% significance level, we conclude that Age is significant in explaining Happiness. C) Reject the null hypothesis. At 1% significance level, we conclude that Age is significant in explaining Happiness. D) Reject the null hypothesis. At 1% significance level, we cannot conclude that Age is significant in explaining Happiness.

Question

Quizplus · Accepted Answer

The t-statistic for the coefficient of Age is -3.02, which has a p-value of 0.005, which is less than the significance level of 0.01. Therefore, we reject the null hypothesis and conclude that Age is significant in explaining Happiness at the 1% significance level.

A Sociologist Wishes to Study the Relationship Between Happiness and Age