Louis Katz, a Cost Accountant at Papalote Plastics, Inc $$\begin{array} { | c | } \hline S _ { 8 } = 0.898 \\\hline r ^ { 2 } = 0.526341 \\\hline\end{array}$$

Multiple Choice

Louis Katz, a cost accountant at Papalote Plastics, Inc.(PPI) , is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units) , and his dependent variable is the total cost of the lot (in $100's) .Regression analysis of the data yielded the following tables. $\begin{array}{|c|c|c|c|c|}\hline \text { Soures } & \text { df } & \text { SS } & \text { MS } & F \\\hline \text { Regressjum } & 1 & 9.858769 & 9.858768 & 12.2234 \\\hline \text { Retidual } & 11 & 8.872 & 0.806545 & \\\hline \text { Thtal } & 12 & 78.7077 & &\\\hline\end{array}$ $$\begin{array} { | c | } \hline S _ { 8 } = 0.898 \\\hline r ^ { 2 } = 0.526341 \\\hline\end{array}$$ Using $\alpha$ = 0.05, Louis should ________________.

A) increase the sample size
B) suspend judgment
C) not reject H₀: $\beta$ ₁ = 0
D) reject H₀: $\beta$ ₁ = 0
E) not reject H₀: $\beta$ ₀ = 0