Essay
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The model y = β0 + β1X1 + β2X2 + ε was fitted to a sample of 25 families in order to explain household milk consumption: where y = Milk consumption,in quarts,per week,x1 = Weekly income,in hundreds of dollars,and x2 = Family size.The least squares estimates of the regression parameters were b0 = -0.03,b1 = 0.05,and b2 = 1.1,with coefficient standard errors
= 0.02;
= 0.38.The total sum of squares and the error sum of squares were found to be 165.8 and 66.32 respectively.
-Test against the appropriate one-sided alternative,the null hypothesis that,for fixed family size,milk consumption does not depend linearly on income.Use α = 0.025.
Correct Answer:

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H0 : β1 = 0; H1 : β1 > 0
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The test stati...
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