Question

Emily Smith Decides to buy a fuel efficient used car. Here are several vehicles she is considering, with the estimated cost to purchase and the age of the vehicle.

	Y	X
Vehicle	Estimated Cost	Age
Honda Insight	$7,155	7
Toyota Prius	$10,732	2
Toyota Prius	$8,963	6
Toyota Echo	$6,793	5
Honda Civic Hybrid	$16,310	2
Chevrolet Prizm	$2,475	8
Mazda Protégé	$2,808	10
Toyota Corolla	$7,073	9
Acura Integra	$8,978	8
Scion xB	$12,213	5
Scion xA	$9,463	3
Mazda3	$15,055	2
Mini cooper	$16,850	4

Conduct a hypothesis test to determine whether the regression slope coefficient is equal to 0. Test using a significance level of 0.10

A) State the null and alternate hypothesis

B) Compute the value of the test statistic

C) Compute the P-Value

D) What is your decision regarding the null hypothesis? interpret the result.

Answer 1