For a given data set containing 18 points, the assumptions of the linear model are satisfied. The
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For a given data set containing 18 points, the assumptions of the linear model are satisfied. The following values are computed: b1 = 5.58 and sb = 4.42. Perform a test of the hypothesis H0 : β1 = 0 versus H1: β1 ≠ 0.
Use the α = 0.05 level of significance. Can you conclude that the explanatory variable is useful in predicting the outcome variable? Explain.
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