The accompanying data represent the total compensation for 12randomly selected chief executive officers​ (CEOs) and the​company's stock performance.
Company  Compensation  Return
AÂ Â 14.98Â Â 74.48
BÂ Â 4.61Â Â 63.62
CÂ Â 6.15Â Â 148.21
DÂ Â 1.11Â Â 30.35
EÂ Â 1.54Â Â 11.94
FÂ Â 3.28Â Â 29.09
GÂ Â 11.06Â Â 0.64
HÂ Â 7.77Â Â 64.16
IÂ Â 8.23Â Â 50.41
JÂ Â 4.47Â Â 53.19
KÂ Â 21.39Â Â 21.94
LÂ Â 5.23Â Â 33.68
​(a) Treating compensation as the explanatory​ variable, x, usetechnology to determine the estimates of β0 and β1.
The estimate of β1 is −0.217.
​(Round to three decimal places as​ needed.)
The estimate of beta 0β0 is 50.1
​(Round to one decimal place as​ needed.)
​(b) Assuming that the residuals are normallydistributed​, test whether a linear relation exists betweencompensation and stock return at the α=0.01level ofsignificance.
What are the null and alternative​ hypotheses?
B.
H0​: β1=0
H1​: β1≠0
Your answer is correct.
Compute the test statistic using technology.
__?__
​(Round to two decimal places as​ needed.)
