Denote Y for profit (in dollars) and X for price (in dollars). The linear regression

model of Y on X is Y_i= ₀ + ₁X_i + _i (i=1, 2, ... n) for n pairs on Y and X. The

hypothesis H₀: ₁=0 vs H₁: ₁0 at =0.01 is to be tested if change in profit is affected

by the change in price. The fitted model through least squares techniques using a

random sample of 25 businessmen is obtained as: = 0.75 - 1.5X and confidence

interval estimate of ₁ is [-2.0, 1.0]. Assuming that underlying assumptions for testing

H₀ to be true, the following statement (s) is/are true:

a. Theprofit increases by 1.5 dollars when price decreases by 1 dollar

b. There is significant high negative linear correlation between price and profit

c. Absolute value of t_STAT falls in the region of rejection

d. None of a, b, c statements are true