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4
a)
Home heating costs Vs Size
Hypothesis
H0: There is no significant relationship between home heating cost and size
H1: There is a significant relationship between home heating cost and size
Significance=0.05/2=0.025
Z=1.96
Decision criteria; Reject H0 if t static is greater than 1.96 and accept H1
Observed value of t statistics=3.78>1.96, we reject H0 and accept H1
Observed value of P-value=0.006
Decision;
There is a significant relationship between home heating cost and size
Home heating costs vs Windows
Hypothesis
H0: There is no significant relationship between home heating cost and windows
H1: There is a significant relationship between home heating cost and windows
Significance=0.05/2=0.025
Z=1.96
Decision criteria; Reject H0 if t static is greater than 1.96 and accept H1
Observed value of t statistics=1.62<1.96, we reject H1 and accept H0
Observed value of P-value=0.1154
Decision;
There is no significant relationship between home heating cost and windows
ii) Home heating costs Vs Occupants
Hypothesis
H0: There is no significant relationship between home heating cost and Occupants
H1: There is a significant relationship between home heating cost and Occupants
Significance=0.05/2=0.025
Z=1.96
Decision criteria; Reject H0 if t static is greater than 1.96 and accept H1
Observed value of t statistics=2.25>1.96, we reject H0 and accept H1
Observed value of P-value=0.0316
Decision;
There is a significant relationship between home heating cost and windows
4
a)
Home heating costs Vs Size
Hypothesis
H0: There is no significant relationship between home heating cost and size
H1: There is a significant relationship between home heating cost and size
Significance=0.05/2=0.025
Z=1.96
Decision criteria; Reject H0 if t static is greater than 1.96 and accept H1
Observed value of t statistics=3.78>1.96, we reject H0 and accept H1
Observed value of P-value=0.006
Decision;
There is a significant relationship between home heating cost and size
Home heating costs vs Windows
Hypothesis
H0: There is no significant relationship between home heating cost and windows
H1: There is a significant relationship between home heating cost and windows
Significance=0.05/2=0.025
Z=1.96
Decision criteria; Reject H0 if t static is greater than 1.96 and accept H1
Observed value of t statistics=1.621.96, we reject H0 and accept H1
Observed value of P-value=0.0316
Decision;
There is a significant relationship between home heating cost and windows
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