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:

Sample

A subset of individuals or observations selected from a larger population for the purpose of statistical analysis.

Descriptive Measure

A descriptive measure provides a summary or analysis that captures the characteristics or features of a dataset, often in terms of central tendency or variability.

Population

The entire set of individuals or objects of interest or the measurements obtained from all individuals or objects of interest.

Parameter

A value that describes a characteristic of a population, such as its mean or standard deviation, often used in statistical models and inference.