Concern over the weather associated with El Nino has increas

Concern over the weather associated with El Nino has increased interest in the possibility that the climate on earth is getting warmer. The most common theory relates an increase in atmospheric levels of carbon dioxide (CO_2), a greenhouse gas, to increases in temperature. A regression analysis of the mean annual CO_2 concentration (in parts per million) in the atmosphere at the top of Mauna Loa in Hawaii and the mean annual air temperature (in degrees Celsius) over both land and sea across the globe for 37 years was performed. Assume all conditions are met for simple linear regression inference. A hypothesis test is to be performed to determine if CO_2 levels is a significant predictor of air temperature. What is the correct conclusion based on the results of the hypothesis test? Choose the correct answer below.

Solution

Here, the t statistic is

t = B1 / sB1

here, B1 = 0.004, sB1 = 0.009.

Thus,

t = 4.444444444

For a 0.001 level, the critical t value is, as df = n - 1 = 36,

tcrit= 3.582149701

Thus, as t > 3.5821, then it is OPTION D. [ANSWER]