Question B:

Consider the partially completed Excel regression analysis shown below between the independent variable rental property area 'X' (in square feet) and the dependent variable monthly rent 'Y' (in 1000s of $) and answer the following questions.

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1. What is the slope(b₁) and what is its statistical interpretation? (10 points)

2. Perform the test of hypothesis (t-test) on the following and state your statisticaldecision. Use ?= 0.05.Please show all the relevant calculations.(10 points)

H₀:?1= 0

H₁: ?1 ? 0

3. Perform the test of hypothesis (F-test) on the following and state your statisticaldecision. Use ?= 0.05. Please show all the relevant calculations.(10 points)

H₀:?1= 0

H₁: ?1 ? 0

4. What is the coefficient of determination (R²) i.e., the percentage of variability in the monthly rent explained by the independent variablerental property area? Please show all the relevant calculations. (10 points)

5. What is the 95% confidence interval for the population slope (?1)? Please show all the relevant calculations. (10 points)?

Regression Statistics Multiple R R Square Adjusted R Square Standard Error 5,93 Observations 13 ANOVA df 55 MS F Regression 3312 54 Error Total 13 3699.45 Coofficiant Standard Error t Stat P.value Lower 93% Upper 95% Intercept 12.67 6:97 X [5q.FU) 0.07