Human capital theory suggests that those who have invested in higher levels of education will be able to command higher wages. A labour economist collected data on annual wages (Y, in $'000) and years of study (X) from a random sample of 12 employees to test this proposition. Assuming a linear relationship between Y and X, the labour economist used a least-squares method and found that the Y intercept = -23.50 and the slope = 9.73.The labour economist also found that the standard error of the slope was 1.61. Based on this information, what statistical decision would you made if you are testing the null hypothesis that there is no linear relationship between the two variables, X and Y?

a.

Do not reject the null hypothesis.

b.

Reject the null hypothesis.

c.

Accept the null hypothesis.

d.

Reject the alternative hypothesis.