Suppose you want to test whether consumption and income are linearly related using the estimates from your regression model. The standard error of the slope is 0.148. Set=0.01

=0.01. What is your conclusion?

Ans. choices

Fail to reject the null hypothesis because 5.07>3.707.

Reject the null hypothesis because -2.53>-4.032.

Reject the null hypothesis because 4.22>4.032.

Reject the null hypothesis because 4.22>3.707.