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9.4 EVALUATING THE REGRESSION EQUATION 429<br />

(a)<br />

Close fit, large r 2<br />

(b)<br />

Poor fit, small r 2<br />

(c)<br />

r 2 = 1<br />

(d)<br />

r 2 0<br />

FIGURE 9.4.5 as a measure of closeness-of-fit of the sample regression line to<br />

the sample observations.<br />

r 2<br />

←<br />

Solution:<br />

The steps in the hypothesis testing procedure are as follows:<br />

1. Data. The data were described in the opening statement of Example<br />

9.3.1.<br />

2. Assumptions. We presume that the simple linear regression model and<br />

its underlying assumptions as given in Section 9.2 are applicable.<br />

3. Hypotheses.<br />

H 0 : b 1 = 0<br />

H A : b 1 Z 0<br />

a = .05

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