A sociologist wishes to study the relationship between happiness and age. He interviews 24 individuals and collects data on age and happiness, measured on a scale from 0 to 100. He estimates the following model: Happiness = β₀ + β₁Age + ε. The following table summarizes a portion of the regression results. When defining whether age is significant in explaining happiness, the competing hypotheses are ________. A) H₀: β₁ = 1; H_A: β₁ ≠ 1 B) H₀: β₁ = 0; H_A: β₁ ≠ 0 C) H₀: β₁ ≤ 0; H_A: β₁ 0 D) H₀: b₁ ≥ 1; H_A: β₁

Question

A sociologist wishes to study the relationship between happiness and age. He interviews 24 individuals and collects data on age and happiness, measured on a scale from 0 to 100. He estimates the following model: Happiness = β₀ + β₁Age + ε. The following table summarizes a portion of the regression results. When defining whether age is significant in explaining happiness, the competing hypotheses are ________. A) H₀: β₁ = 1; H_A: β₁ ≠ 1 B) H₀: β₁ = 0; H_A: β₁ ≠ 0 C) H₀: β₁ ≤ 0; H_A: β₁ > 0 D) H₀: b₁ ≥ 1; H_A: β₁ < 1

Quizplus · Accepted Answer

The competing hypotheses when testing whether age is significant in explaining happiness are H₀: β₁ = 0 (age has no effect on happiness) and H_A: β₁ ≠ 0 (age has some effect, positive or negative, on happiness). Therefore, Choice B is the best answer.

A Sociologist Wishes to Study the Relationship Between Happiness and Age