Question

What is the conclusion of the test that determines the regression parameters ????_1 is equal to zero at a 0.01 level of significance? (Assume that the conditions necessary for proper inference are satisfied.) Select one: a) National income is a significant indicator of the company sales. b) National income is not a significant indicator of the company sales. c) Intercept is a significant indicator of the company sales. d) Intercept is not a significant indicator of the company sales.

Answer 1

Answer:

It implies that national income is not a significant indicator of the company's sales. The correct answer is B.

Explanation:

The reason is that regression coefficients are expected to be compared with table value. since the regression coefficients are zero at 0.01 level of significance, it means that the results are not statistically significant. Thus, we can conclude that national income is not a significant indicator of the company's sales.