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MODULE 7.3: HYPOTHESIS TESTS AND CONFIDENCE INTERVALS
Does not include zero, hence:
Reject Ho!
Slope coefficient is significantly different from zero!
LOS 7.g: Formulate a Ho and Ha about a population value of a regression coefficient and determine the appropriate
test statistic and whether Ho is rejected at a given SL.
A t-test is used to test whether a slope coefficient, b , is equal to some hypothesized value (df = n - 2).
1
Rejection of Ho means the slope coefficient is different from the hypothesis value b1
To test for statistical significance of the independent variable explaining the variation in the dependent variable, we use:
