Question

The following data have been collected for a simple linear regression analysis relating sales (y) to price (x):

x	y
Price     ($)	Sales (units)
4	120
7	60
5	100
8	80

In applying the least squares criterion, the slope (b) and the intercept (a) for the best-fitting line are b = -12 and a = 162. You are to conduct a hypothesis test to determine whether you can reject the null hypothesis that the population slope, β, is 0 at the 1% significance level. Report the value of the appropriate sample test statistic, t_stat.

a)-1.23

b)-2.27

c)-3.52

d)-4.16

Answer 1

option B is correct