SCENARIO 13-9
It is believed that, the average numbers of hours spent studying per day (HOURS) during undergraduate education should have a positive linear relationship with the starting salary (SALARY, measured in thousands of dollars per month) after graduation. Given below is the Excel output for predicting starting salary (Y) using number of hours spent studying per day (X) for a sample of 51 students. NOTE: Only partial output is shown.

Note: 2.051 E - 05 = 2.051*1 0-5 and 5.944 E -18 = 5.944 *10 -18 .
-Referring to Scenario 13-9,the value of the measured t-test statistic to test whether mean SALARY depends linearly on HOURS is
A)-4.7134
B)-1.8940
C)0.9795
D)13.3561

Question

SCENARIO 13-9
It is believed that, the average numbers of hours spent studying per day (HOURS) during undergraduate education should have a positive linear relationship with the starting salary (SALARY, measured in thousands of dollars per month) after graduation. Given below is the Excel output for predicting starting salary (Y) using number of hours spent studying per day (X) for a sample of 51 students. NOTE: Only partial output is shown.

Note: 2.051 E - 05 = 2.051*1 0-5 and 5.944 E -18 = 5.944 *10 -18 .
-Referring to Scenario 13-9,the value of the measured t-test statistic to test whether mean SALARY depends linearly on HOURS is
A)-4.7134 
B)-1.8940 
C)0.9795 
D)13.3561

Quizplus · Accepted Answer

The output shows that the t-test statistic for the slope coefficient (HOURS) is 13.3561, which is much greater than the critical t-value at a significance level of 0.05 (2.0096 for a two-tailed test with 49 degrees of freedom). Therefore, we can reject the null hypothesis that there is no linear relationship between HOURS and SALARY, and conclude that there is significant evidence of a positive linear relationship between the two variables.

SCENARIO 13-9 It Is Believed That, the Average Numbers of Hours Spent