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The Cadet is a popular model of sport utility vehicle, known for its relatively high resale value. For a random sample of 35 Cadets, each

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The Cadet is a popular model of sport utility vehicle, known for its relatively high resale value. For a random sample of 35 Cadets, each bought "new" two years ago and each sold "used" within the past month, the least-squares regression equation relating the two variables mileage, x (in thousands), and used selling price, y (in thousands of dollars), was y = 44.12-0.52x. The standard error of the slope of this least-squares regression line was approximately 0.40. Based on this information, test for a significant linear relationship between the two variables by doing a hypothesis test regarding the population slope B. (Assume that the variable y follows a normal distribution for each value of x and that the other regression assumptions are satisfied.) Use the 0.10 level of significance, and perform a two-tailed test. Then complete the parts below. (If necessary, consult a list of formulas.) (a) State the null hypothesis H and the alternative hypothesis H. B p Ho : X H : I 0=0 OSO (b) Determine the type of test statistic to use. (Choose one) 020 0#0 0O X 5 ? (d) Find the two critical values at the 0.10 level of significance. (Round to three or more decimal places.) and (e) Based on the information, can we conclude (using the 0.10 level) that there is a significant linear relationship between mileage and used selling price for two-year-old Cadets? Yes ONo

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