Question

Solve the following hypothesis test problems (hint: use the t-tables in the document “Formulas and Tables” as the reference guide for computing the critical value)

4.) significance level: 5% Sample size: 82 Model: y-alpha + beta*x Alpha: 13.65 SE(alpha): 4.45 SE(beta): 3.98 Beta: 6.82 a) Test for H0: beta=0 b) Compute the confidence interval What does the CI tell us? Did we already see this coming when we tested for significance of beta?

Answer 1

Ars! we have d = 13.65 ; S'E(&)=4.45 Beta (B) = 6-82, S-ECB) = 3-98. sample size (n) = 82, significance levels (9) het Hoißão, Meißto (two failed et section et de 1714 pralue - 0.2577 since pralue 2005 so we accept ho (b) et at 95% with (82-2)=fo of = 1.99. - confidence Internal for ßa ß I etapod st(B) 9 6.82 1.99x398 = 6.82 I 7.92 3 El.1,14.74) (e) aue are 95% confident that population estimate af ß lies in this internal. The result from . the confidence can be drawn same as the etesting of significance for ßa