An economist is in the process of developing a model to predict the price of gold. She believes that the two most important variables are the price of a barrel of oil and the interest rate She proposes the first-order model with interaction: .
A random sample of 20 daily observations was taken. The computer output is shown below.
THE REGRESSION EQUATION IS . S = 20.9 R-Sq = 55.4%. Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of gold are linearly related?
Correct Answer:
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Rejection region: |t| >...
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