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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 + β1 Service + 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.   Using the 95% confidence interval,which of the following is the conclusion to the following hypothesis test: H<sub>0</sub>:β<sub>0</sub> = 0;H<sub>A</sub>: β<sub>0</sub> ≠ 0? A)  At the 5% significance level,reject H<sub>0</sub> because the interval contains 0. B)  At the 5% significance level,do not reject H<sub>0</sub> because the interval contains 0. C)  At the 5% significance level,reject H<sub>0</sub> because the interval does not contain 0. D)  At the 5% significance level,do not reject H<sub>0</sub> because the interval does not contain 0. Using the 95% confidence interval,which of the following is the conclusion to the following hypothesis test: H00 = 0;HA: 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.

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