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:

-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:
 
-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 -2.309, and the corresponding p-value is 0.027. Since the p-value is less than the significance level of 0.05, the department head would reject the null hypothesis that the coefficient of X₁ is equal to 0 and conclude that there is a significant linear relationship between X₁ and Y (the GPA of students). Therefore, the correct answer is A.

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