An analyst studies a company's turnover over ten years. Let x be the number of years after the first year the analyst looks at. Y is the turnover in the year and the analyst assumes that the turnover is a normally distributed stochastic variable with expectation E(Y)=B0+B1x and standard deviation sigma=0.12. From the observations, the analyst finds that: x=3.60 and y=4.48 M=9x=0(xix)^2=7.44 , 9=0(xix)yi=4.73.

I have found estimates of beta to be:

Beta0: 2,18

Beta1: 0,64

Task B:

Can it be demonstrated that the annual turnover increase, 1, is greater than 0.5? Formulate appropriate hypotheses and conduct the hypothesis test at a 2.5% significance level. Find the critical value.