A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates the following model: Salary = β₀ + β₁ Service + ε.The following table summarizes a portion of the regression results. Using the 95% confidence interval,what is the conclusion to the following hypothesis test: H₀:b₁ = 0;H_A: b₁ ≠ 0? A) At the 5% significance level,reject H₀ and conclude that service is significant. B) At the 5% significance level,do not reject H₀ and conclude that service is significant. C) At the 5% significance level,reject H₀ and conclude that service is not significant. D) At the 5% significance level,do not reject H₀ and conclude that service is not significant.

Question

Quizplus · Accepted Answer

The 95% confidence interval for the coefficient of Service (b₁) does not include 0, which means that we can reject the null hypothesis H₀:b₁ = 0. Therefore, we can conclude that service is significant at the 5% significance level.

A Manager at a Local Bank Analyzed the Relationship Between