Page 99 - Basic Statistics

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d. Perform testing of the coefficient  1 = 0

Worked Solution :

2
 X= …….  X = ……….. YX =…………
2
 Y= ……. Y = ………..

12 12
 j X  Y j

Means : X = j= 1 = .......... = .......... Y = j= 1 = .......... = .......... .
12 12 12 12

ˆ
ˆ
a. The calculation of the value of the coefficient β and β :
0
1
ˆ
2
β = ( Xj - X )( Y j - Y ) /  (Xj - X )
1
ˆ
β = [  X j Y j – (  X j )(  Y j) / n ] / [  X j - (  X j ) / n ]
2
2
1
= […………. – (……..)(……..) / …. ] / [………. - (……..) / ….. ]
2
= ………..

ˆ
ˆ
β = Y - β X
0
1
= ……… – ………. (……….)
= …………

ˆ
The allegation regression equation Y = …….. + ………. Xj
j

b. Hypotheses:

H 0 :  1 = 0.

H 1 :  1  0

~~* CHAPTER 5 LINEAR REGRESSION MODEL *~~