Based on the numbers Excel computed for you first rite me wh

Based on the numbers Excel computed for you, first, rite me what the observed-t value for the slope is. Second, given the H1, what would you say is the actual probability of committing a Type-I error if we decide to reject the Ho when in reality it may be true? Third, is that probability very small or very large? Given that probability, should we reject the null or not?

Solution

1).   Observed t = -4.011878652.

2). Probability of committing type I error = 0.00388487.

3). This probability is very small. We should reject the null hypothesis. ( P=0.00388487 < 0.05 or < 0.01 level)