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_b= 1.13.Construct an appropriate hypothesis test to determine whether we can use the sample data here to reject a β = 0 null hypothesis at the 5% significance level.Report your conclusion. A)Since t_stat is outside the critical values of ±3.182, we can reject the β=0 null hypothesis. B)Since t_stat is outside the critical values of ±4.362, we can reject the β=0 null hypothesis. C)Since t_stat is not outside the critical values of ±4.303, we can't reject the β=0 null hypothesis. D)Since t_stat is not outside the critical values of ±2.182, we can't reject the β=0 null hypothesis.

Question

Quizplus · Accepted Answer

The Answer of 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_b= 1.13.Construct an appropriate hypothesis test to determine whether we can use the sample data here to reject a β = 0 null hypothesis at the 5% significance level.Report your conclusion. A)Since t_stat is outside the critical values of ±3.182, we can reject the β=0 null hypothesis. B)Since t_stat is outside the critical values of ±4.362, we can reject the β=0 null hypothesis. C)Since t_stat is not outside the critical values of ±4.303, we can't reject the β=0 null hypothesis. D)Since t_stat is not outside the critical values of ±2.182, we can't reject the β=0 null hypothesis.

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