In a simple linear regression based on 30 observations, it is found that b1 = 7.2 and Sb1 = 1.8. Consider the hypotheses:
H0: β1 ≥ 10 and HA: β1 <>
a. Calculate the value of the appropriate test statistic.
b. At the 5% significance level, what is the critical value(s)?
c. What is the conclusion to the test?