Question: In the Excel file, Betting.xls, that you have downloaded, I have computed the t statistic for the hypothesis test for = 0 in cell E18 and the critical value in F18. Check this number against the number provided by Excel on the regression results sheet. They should agree.

A. On the basis of these calculations would you reject the null hypothesis?

B. State what the slope of the regression line in the terms of this problem. That is, if there is an increase on one unit in the x variable, what is the increase in the predicted y variable?

Having gone through question 1 and 2, how can you justify that this regression model is indeed appropriate when the slope is almost 0.