3 You are trying to determine the statistical significance o

3) You are trying to determine the statistical significance of an equation. Given the following information, test the slope of the equation at the 90% level of confidence. Select the correct answer out of each pair of choices.

Cost = 153.58 + 1.58 (Power) n=12 Sb1 = 17.669

(Show the math please)

a. The tp is 1.812

a. The tp is 1.476

b. The tc is 0.089

b. The tc is 81.088

c. We would reject the null hypothesis

c. We would fail to reject the null hypothesis

d. We would consider using the equation.

d. We would not use the equation

Solution

Tabulated value of t at alpha/2 = 0.10/2 = 0.05 with (12 – 2 = 10) degrees of freedom is 1.812.

Option A is correct.

           Test Statistics = b1/ (Sb1/n)

                       = 1.58/17.669

                       = 0.089

Since tc < tp, we have sufficient evidence to fail to reject the null hypothesis.