Test the hypothesis, at the 0.01 level of significance, that there is no straight-line relationship between per
pupil expenditure and teacher salary. Assume that the conditions necessary for inference for linear
regression are present.
solution:I . Let β = the true slope of the regression line for predicting salary from per pupil expenditure.II . We will use the t -test for the slope of the regression line. The problem states that the
conditions necessary for linear regression are present.
III . The regression equation is
= 12027 + 3.34 PPE(s = 2281, s (^) b = 0.5536)