Use the Given Set of Points to Test the Null $H _ { 0 } : \beta _ { 1 } = 0$

question 46

Multiple Choice

Use the given set of points to test the null hypothesis $H _ { 0 } : \beta _ { 1 } = 0$ versus $H _ { 1 } : \beta _ { 1 } \neq 0$ Use the $\alpha = 0.01$ level of significance.
$\begin{array} { c | c c c c c c c c } x & 14 & 7 & 15 & 10 & 9 & 6 & 14 & 15 \\\hline y & 32 & 17 & 36 & 26 & 21 & 15 & 34 & 37\end{array}$

• A) Do not reject H₀
• B) Reject H₀

---

Definitions:

Compounded Interest

Interest that is computed on both the original amount of money and the interest it has already earned over past periods, whether it’s a savings or a loan.

Investments

Assets or items acquired with the intention of generating income or appreciating in value over time.

Annually

Occurring once every year; relating to a period or cycle of one year.

Compounded Annually

A technique for computing interest in which the interest accrued annually is compounded to the principal amount, resulting in a balance that not only expands but does so at an accelerating pace.