A Manager at a Local Bank Analyzed the Relationship Between

Multiple Choice

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. Using the 95% confidence interval, which of the following is the conclusion to the following hypothesis test: H₀: β₀ = 0; H_A: β₀ ≠ 0?

A) At the 5% significance level, reject H₀ because the interval contains 0.
B) At the 5% significance level, do not reject H₀ because the interval contains 0.
C) At the 5% significance level, reject H₀ because the interval does not contain 0.
D) At the 5% significance level, do not reject H₀ because the interval does not contain 0.