Regression analysis was applied between sales data (y in $1000s) and advertising data (x in $100s) and the following information was obtained. = 12 + 1.8x

N = 17
SSR = 225
SSE = 75
Sb₁ = .2683
The critical t value for testing the significance of the slope, at a .05 level of significance, is

Question

Regression analysis was applied between sales data (y in $1000s) and advertising data (x in $100s) and the following information was obtained.

= 12 + 1.8x

N = 17
SSR = 225
SSE = 75
Sb₁ = .2683
The critical t value for testing the significance of the slope, at a .05 level of significance, is

Quizplus · Accepted Answer

The critical t value for testing the significance of the slope at a .05 level of significance and 15 degrees of freedom is 2.131. This can be found using a t-distribution table or a statistical software program. Since the sample size is 17 and there is one independent variable, this leaves 15 degrees of freedom for the t-test. The t-statistic can be calculated using the formula t = b/SEb, where b is the estimate of the slope and SEb is the standard error of the slope, which can be calculated as Sb₁. In this case, t = 1.8/.2683 = 6.71, which is greater than the critical value of 2.131. Therefore, we can conclude that the slope is statistically significant at the .05 level.

Regression Analysis Was Applied Between Sales Data (Y in $1000s)