In an a tte m p t to d e te rm in e w h e th e r or n o t a linear re latio n sh ip ex ists b e tw e e n th e p rice o f a h o m e (in $1,000s)

a n d th e n u m b e r o f d ay s it ta k e s to sell th e h o m

e, a real e s ta te a g e n t co llected d a ta from re c e n t sales in his city a n d e stim a te d th e follow ing m o d el: Price = β 0 + β 1 ays + ε. A p o rtio n of th e Excel resu lts is sh o w n in th e acco m p an y in g ta b le .

Coefficients Standard Error t Stat p -value Intercept – 491.27 156.94 – 3.13 0.0203 Days 6.17 1.19 5.19 0.0020 Specify th e hy p o th eses to d eterm in e w h eth er Days is significant in explaining a house's price. At th e 5%

significance level, w h at is th e conclusion to th e test?

Explain.