## Why is hypothesis testing require the line “given the data?” Why do we reject the null hypothesis versus accept the alternative hypothesis?

Part 1 (5 Points):

Please answer the following in writing:

1) Why is hypothesis testing require the line “given the data?”

2) Why do we reject the null hypothesis versus accept the alternative hypothesis?

3) What is the goal of linear regressions (i.e. how does the computer determine what coefficient to

use)?

4) Why does the denominator of a sample versus a population variance differ?

5) Relate the central limit theorem to the law of large numbers.

Part 2 (5 Points):

All Calculations must be done in R using the excel document “Gas_Consumption.xlsx”:

1) Plot X=Income and Y=Gas Consumption.

2) Describe plot #1 and what you notice about the plot?

3) Calculate the Regression Line of #1.

4) Interpret the coefficients by describing what they mean from a practical sense (what are the

numbers saying)?

5) Given your answer to number four, does the result match your intuition? Why or why not?

## Answer preview for Why is hypothesis testing require the line “given the data?” Why do we reject the null hypothesis versus accept the alternative hypothesis?

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