A statistics practitioner in a large university is investiga

A statistics practitioner in a large university is investigating the factors that affect salary of professors. He wondered if evaluations by students are related to salaries. To this end, he collected 100 observations on:

y      =   Annual salary (in dollars)
x      =   Mean score on teaching evaluation

      To accomplish his goal, he assumes the following relationship:

y = (0) +  (1)x +      

Then, using Excel’s Data Analysis, he obtained the following result.

R²=0.23

Coefficient

Standard Error

Intercept

25675.5

11393

x

5321

2119

Solution

The correct Null and alternative hypothesis is

b. (1) = 0 and (1) 0

The test statistic t =(1)/SE =5321/2119 = 2.5111

Here (1)=5321 ; SE =2119 ;

DF =n-2 = 100-2 = 98

P-value is is 0.014