1. You are going to test the following hypothesis, H0 : µ = 25 at the .05 level of significance. The report from the satisticians shows that the p-value for this test is .121. (a) You fail to reject the null hypothesis. (b) You fail to reject the null hypothesis for the one tailed version of the test only. (c) You reject the null hypothesis. (d) None of the above. I know the answer is A, but I was hoping for an explanation as to why. 2. Suppose you see that all values of your independent variable are the same. You use this independent variable in your simple regression. Choose the most correct statement below. (a) Your intercept term will be zero and the coefficient on your independent variable will be the average of your dependent variable. (b) The R square value will be 0. (c) This cannot happen unless you have fewer observations for the independent variable than for the dependent variable. (d) The sum of squares due to regression will be 0. (e) B and C are correct. The answer is E, but why?

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