=+43. Cost index 2011. The Worldwide Cost of Living Survey published by The Economist provides an index that expresses the cost of living in other cities as a percentage of the New York cost. For example, in 2011, the cost of living index in Tokyo was 161, which means that it was 61% higher than New York. The output shows the regression of the 2011 on the 2010 index for the ten most expensive cities in 2011, where Index 2011 is the response variable.

Predictor Coeff SE(Coeff) t-Ratio P-Value Intercept 46.73 15.45 3.02 0.0164 Index 2010 0.744 0.115 6.49 0.0002 s = 3.474 R-Sq = 84.0%

a) State the hypotheses about the slope (both numerically and in words).