TABLE 14-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units (credits) and total SAT scores of each. She takes a sample of students and generates the following Microsoft Excel output:
SUMMARY OUTPUT
Regression Statistics
ANOVA

-Referring to Table 14-7, the department head wants to use a t test to test for the significance of the coefficient of X₁. At a level of significance of 0.05, the department head would decide that β₁ ≠ 0.

Question

TABLE 14-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units (credits) and total SAT scores of each. She takes a sample of students and generates the following Microsoft Excel output:
SUMMARY OUTPUT
Regression Statistics

ANOVA

-Referring to Table 14-7, the department head wants to use a t test to test for the significance of the coefficient of X₁. At a level of significance of 0.05, the department head would decide that β₁ ≠ 0.

Quizplus · Accepted Answer

The t value for X₁ is -2.23 with a corresponding p-value of 0.031. Since the p-value is less than the level of significance of 0.05, we reject the null hypothesis and conclude that the coefficient of X₁ is significantly different from zero. Therefore, the department head would decide that β₁ ≠ 0.

TABLE 14-7 The Department Head of the Accounting Department Wanted to See