A magazine surveyed​ graduates, asking about their point of view of the colleges they had attended. One good predictor of early career earnings​ ($/year) turned out to be the average SAT score of entering students. Here are the regression model and associated plots. Test the hypotheses H0: β1=0 vs. HA: β1≠0. What is the test statistic?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 67E
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A magazine surveyed​ graduates, asking about their point of view of the colleges they had attended. One good predictor of early career earnings​ ($/year) turned out to be the average SAT score of entering students. Here are the regression model and associated plots. Test the hypotheses

H0: β1=0

vs.

HA: β1≠0.

What is the test statistic?

 

 

Response variable is: Earn
R squared = 31.1%
s = 5626 with 706-2= 704 degrees of freedom
Variable
Intercept
SAT
Residuals
Number of Colleges
20000-
10000-
-10000-
-20000-
120-
100-
80-
0
60-
35000 40000 45000 50000 55000 60000
40-
20-
0+
Coefficient SE(Coeff) t-ratio
P-value
14530.8
1702
8.54
<0.0001
27.6166
1.507
18.33 <0.0001
-20000
-10000
Predicted
0
Residuals
10000
20000
Transcribed Image Text:Response variable is: Earn R squared = 31.1% s = 5626 with 706-2= 704 degrees of freedom Variable Intercept SAT Residuals Number of Colleges 20000- 10000- -10000- -20000- 120- 100- 80- 0 60- 35000 40000 45000 50000 55000 60000 40- 20- 0+ Coefficient SE(Coeff) t-ratio P-value 14530.8 1702 8.54 <0.0001 27.6166 1.507 18.33 <0.0001 -20000 -10000 Predicted 0 Residuals 10000 20000
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