Questions 1 and 2 pertain to the simple linear regression model. 1. (a) Write down the test statistic for the null hypothesis B1 = 0 against the alternative that B1 ≠ 0. (Define all terms!) (b) How would you determine the rejection region? (c) Assume the test statistic is in the nonrejection region. What do you conclude? 2. How would you estimate o2, the variance of uj? How does this change your answer to 1.? 3. Suppose that a regression of Y on X yields the following results, based on a sample of size 30: y, = 25.1 + 1.2 xi (2.1) (1.5) where standard errors appear in parentheses. (a) Compute test statistics to test the null hypotheses that B; = 0 against the alternative that B; ≠ 0, i= 0,1. What do you conclude? (Make the probability of a Type I Error = .05.) (b) Compute a 95