Question

What are the null and alternative hypotheses for this test? b. Use the ANOVA and the 0.05 level of significance in testing the null hypothesis identified in part (a). For a sample of 8 employees, a personnel director has collected the following data on ownership of company stock versus years with the firm. a. Determine the least-squares regression line and interpret the slope. b. Interpret the value of r.

Answer 1

The null hypothesis is that there is no significant relationship between ownership of company stock and years with the firm, while the alternative hypothesis is that there is a significant relationship.

Step-by-step explanation:

The null and alternative hypotheses for the given test can be written as follows:

• Null hypothesis (H0): There is no significant relationship between ownership of company stock and years with the firm.
• Alternative hypothesis (Ha): There is a significant relationship between ownership of company stock and years with the firm.

To test the null hypothesis, an ANOVA (Analysis of Variance) can be conducted at a significance level of 0.05. The ANOVA procedure helps determine if there is statistical evidence to reject the null hypothesis and conclude that there is a significant relationship between the variables.

If the test results in a p-value less than 0.05, the null hypothesis is rejected. This indicates that there is enough evidence to support the claim that there is a significant relationship between ownership of company stock and years with the firm.