Question

A candidate for the local Board of Education does not believe that school districts that spend more per student have higher SAT score. The candidate wants to use regression analysis to investigate this. The candidate collects data for ten similar school districts nearby to test the hypothesis. The following table shows the data.

SAT Score	Spending per student
1,114	3,824
1,044	4,270
1,117	3,307
1,015	5,387
1,071	4,732
1,017	5,543
998	4,894
1,050	4,178
1,030	4,091
1,081	3,534

What is the t-statistic for slope and is it significantly significant?

t = -3.6479 and it is significantly significant

t = -3.6479 and it is not significantly significant

t = 4.6981 and it is not significantly significant

t = 3.9420 and it is not significantly significant

Answer 1

t - statistic for slope is -3.6479 and it is significantly significant.