Exhibit 13-5
Below you are given a partial Minitab output based on a sample of 25 observations.
$\begin{array}{lcc}&\text { Coefficient }&\text { Standard Error }\
\text { Constant } & 145.321 & 48.682 \
\mathrm{X}_{1} & 25.625 & 9.150 \
\mathrm{X}_{2} & -5.720 & 3.575 \
\mathrm{X}_{3} & 0.823 & 0.183
\end{array}$
-Refer to Exhibit 13-5. Carry out the test of significance for the parameter ?? at the 5% level. The null hypothesis should be
A) rejected
B) not rejected
C) revised
D) None of these alternatives is correct.

Question

Exhibit 13-5
Below you are given a partial Minitab output based on a sample of 25 observations.
 $\begin{array}{lcc}&\text { Coefficient }&\text { Standard Error }\
\text { Constant } & 145.321 & 48.682 \
\mathrm{X}_{1} & 25.625 & 9.150 \
\mathrm{X}_{2} & -5.720 & 3.575 \
\mathrm{X}_{3} & 0.823 & 0.183
\end{array}$
-Refer to Exhibit 13-5. Carry out the test of significance for the parameter ?? at the 5% level. The null hypothesis should be
A) rejected
B) not rejected
C) revised
D) None of these alternatives is correct.

Quizplus · Accepted Answer

The test statistic for the parameter is calculated as the coefficient divided by the standard error. For X3, it is 0.823 / 0.183 = 4.497. Comparing this to a critical t-value (approximately 2.064 for df = 21 at 5% significance level), the null hypothesis is rejected because 4.497 > 2.064.

Exhibit 13-5 Below You Are Given a Partial Minitab Output

Exhibit 13-5
Below You Are Given a Partial Minitab Output