A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and so collects monthly data for 25 firms. He estimates the model:

Sales = b0+ b1Advertising + e. The following table shows a portion of the regression results.

Coefficients

Standard Error

t-stat

p-value

Intercept

40.10

14.08

2.848

0.0052

Advertising

2.88

1.52

1.895

0.0608

Which of the following are the competing hypotheses used to test whether Advertising is significant in predicting Sales?

Group of answer choices

H0: b1= 0; HA: b1 0.

H0: b1= 2.88; HA: b1 2.88.

H0: b1= 0; HA: b1 0.

H0: b1 0; HA: b1= 0.