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Constant 87.92 13.96 6.30 0.000
X1 -3.3869 0.9930 -3.41 0.011
X2 2.327 2.264 1.03 0.338
We are to test the following null and alternative hypotheses
The decision rule is
reject 
if 
From solution we obtain that 
. It also can be found as
Since 
, we accept the null hypothesis. Consequently, we conclude that the slope of 
in regression model is zero. That is, the number of driving violations is not significant and an increase (or decrease) in the number of driving violations does not affect the auto insurance premium.
Remark:
Note that the observed value of test statistic T (test statistic t) is obtained from the MINITAB solution only if the null hypothesis is . However, if the null hypothesis is that 
is equal to a number other than zero, then the t value obtained from the MINITAB solution is no longer valid. In this case observed value of the test statistic will be calculated as
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