Needing a Simple Cost Estimator for Commercial Construction Costs in the City

Multiple Choice

Needing a simple cost estimator for commercial construction costs in the city, you hope to find a useful linear relationship between cost (y) and floor space (x) .You have data from a sample of four recently completed building projects: The estimated regression equation turns out to be y = 24 + 1.6x and s_y.x = 17.9.You want to construct an appropriate hypothesis test to determine whether we can use the sample data here to reject a β = 0 null hypothesis.Calculate the value of the proper test statistic, t_stat, for the test.

A) 4.2
B) 2.8
C) 5.1
D) 1.4
E) 6.3