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Choose the significance level

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Reference no: EM131737809

Conduct a hypothesis for whether consumption and income are linearly related using a=0.01 . The standard error of the slope is 0.144.

Step 1: State the null and alternative hypotheses.

Step 2: Choose the significance level.

Step 3: Calculate the test statistic.

Step 4: Find the critical value(s).

Step 5: Compare the test statistic to the critical value(s).

Step 6: State the conclusion.

Reference no: EM131737809

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