THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 82

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X₁ is the number of loans,X₂ is the interest rate,and X₃ is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results:
= 5.7 + 0.189x₁ - 1.3x₂ + 0.08x₃,
= 3.2,
= 0.03,
= 0.062,
= 0.17,R² = 0.46,and adjusted
= 0.41.
-What should the null and alternative hypotheses be for β₃?

• A)H₀ : β₃ = 0, H₁ : β₃ > 0
• B)H₀ : β₃ = 0, H₁ : β₃ < 0
• C)H₀ : β₃ ≠ 0, H₁ : β₃ = 0
• D)H₀ : β₃ > 0, H₁ : β₃ ≠ 0

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Definitions:

Capacity

The maximum amount that something can contain or the ability to perform, function, or produce.

Younger Adults

Individuals typically in their late teens to late 30s, considered to be in an early stage of adulthood.

Events

Occurrences or happenings that are noteworthy.

Brain

The organ of the body in the head that controls functions, movements, sensations, and thoughts.