The regression printout below shows the results of a regression analysis intended to link company profits (x) to CEO salary (y) .A sample of 18 CEOs was used.
Can you use the sample results shown here to reject a β = 0 null hypothesis at the 5% significance level? Explain.
A) Yes, since the upper bound on the 95% interval estimate of β is greater than 0, we can reject the β = 0 null hypothesis.
B) No, since the p-value for the intercept term is greater than the significance level of .05, we can't reject the β = 0 null hypothesis.
C) Yes, since the p-value for the coefficient of the profit variable is less than .05, we can reject the β = 0 null hypothesis.
D) No, since tstat for the profit variable is inside ±2.120, we can't reject the β = 0 null hypothesis.
Correct Answer:
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