The data referred to in this question were collected on 41 employees of a large company.The company is trying to predict the current salary of its employees from their starting salary (both expressed in thousands of dollars).The SPPS regression output is given below as well as some summary measures: Suppose we wish to test the hypotheses H₀: $\beta$₁ = 2 versus H_a: $\beta$₁$\neq$ 2.Together with an insignificant constant in this model,this would imply that the employees currently earn about twice as much as their starting salary.At the 5% significance level,would we reject the null hypothesis? A)Yes B)No C)This cannot be determined from the information given.

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Quizplus · Accepted Answer

The hypotheses being tested are: H₀: F1F1F1S1F1F1F10₁ = 2 H_a: F1F1F1S1F1F1F10₁F1F1F1S1F1F1F10 where β1 represents the coefficient for the starting salary variable in the regression model. The null hypothesis states that β1 is equal to 2, meaning that employees currently earn exactly twice as much as their starting salary. The alternative hypothesis is that β1 is not equal to 2. To determine whether or not to reject the null hypothesis at the 5% significance level, we need to examine the p-value associated with the coefficient for starting salary in the regression output. From the output given, we can see that the p-value for the coefficient is 0.023, which is less than 0.05. This means that the coefficient is statistically significant at the 5% level, and we can reject the null hypothesis. Therefore, the answer is B) No, we would not fail to reject the null hypothesis at the 5% significance level.

The Data Referred to in This Question Were Collected on 41