Question

MC 1) Assume that the 99% confidence interval for a regression slope parameter β2 is from -0.3 to 0.8, while the 95% confidence interval for is from 0.1 to 0.4. Suppose you are interested in a test of the null hypothesis Ho : β2--O against the alternative of H1 : β2 Which of the following staternents is true about the p-value for this test? a) p-value >0.05 99 % b) p-value >0.10 fol to ret at ll c) 0.05> p-value > 0.01 d) p-value 0.01 10 > p-value 0.05 rct f) none of the above are true

Please help, thanks

Answer 1

Answer is option c)

P value is the minimum significance level at which null hypothesised value of H0 is rejected.

So if this value lies inside the Confidence interval , then H0 is not rejected,

Thus for 99% CI, significance level is 1%

So H0 is not rejected at 1%, bcoz 0 lies in the interval.

So H0 is rejected at 5% level.

So the rule says that, if

P value < significance level, then H0 is rejected.

So if H0 is not rejected at 1% & is rejected at 5% , then

.01< p value < .05