Suppose we are testing the null hypothesis that there is no relationship between two variables X and


Question: Suppose we are testing the null hypothesis that there is no relationship between two variables X and Y. From a sample of n=22 we determine that SSR=20 and SSE=80.

(a) What is the value of F test statistic? What is the critical F value at 0.05 level of significance? Should we reject the null hypothesis?

(b) Calculate the correlation coefficient by first calculating r2 and assuming b1 is positive.

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