Suppose you used Excel to estimate the following model ATMTi

Suppose you used Excel to estimate the following model:

ATMTime= ₀ + ₁Age+ ₂Gender+

Where, ATMTime = time it takes to complete an ATM transaction in seconds, Age = age of the customer in years, Gender = dummy variable that is 1 if the customer is male and 0 if the customer is female.

Suppose the 95% confidence interval around the parameter estimate for 1 was calculated and had lower limit of 0.025 and an upper limit of 0.500.

Does Age significantly affect ATMTime at the 0.025 significance level?

Select one:

a. Yes

b. No

c. More information is required to answer this question

Please Help!!

Solution

a. Yes.

Age significantly affect ATMTime at the 0.025 significance level.

If the confidence interval for ₁ contains 0, then we conclude that there is no evidence of a relationship between the predictor x and the response y in the population. On the other hand, if the confidence interval for ₁ does not contain 0, then we conclude that there is evidence of a relationship between the predictor x and the response y in the population.