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A Manager at a Local Bank Analyzed the Relationship Between

Question 56

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A manager at a local bank analyzed the relationship between monthly salary (y, in $) and length of service (x, measured in months) for 30 employees. She estimates the following model: Salary = β0 + β1Service + ε. The following table summarizes a portion of the regression results. A manager at a local bank analyzed the relationship between monthly salary (y, in $) and length of service (x, measured in months) for 30 employees. She estimates the following model: Salary = β<sub>0</sub> + β<sub>1</sub>Service + ε. The following table summarizes a portion of the regression results. Which of the following hypotheses will determine whether the intercept differs from zero? A) H<sub>0</sub>: β<sub>0</sub> = 0; H<sub>A</sub>: β<sub>0</sub> ≠ 0 B) H<sub>0</sub>: β<sub>1</sub> = 0; H<sub>A</sub>: β<sub>1</sub> ≠ 0 C) H<sub>0</sub>: b<sub>0</sub> = 0; H<sub>A</sub>: b<sub>0</sub> ≠ 0 D) H<sub>0</sub>: b<sub>1</sub> = 0; H<sub>A</sub>: b<sub>1</sub> ≠ 0 Which of the following hypotheses will determine whether the intercept differs from zero?


A) H0: β0 = 0; HA: β0 ≠ 0
B) H0: β1 = 0; HA: β1 ≠ 0
C) H0: b0 = 0; HA: b0 ≠ 0
D) H0: b1 = 0; HA: b1 ≠ 0

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