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LOS 8.c: Formulate an Ho and Ha about the population value of a READING 8: MULTIPLE REGRESSION AND ISSUES IN REGRESSION ANALYSIS
regression coefficient, calculate the value of the test statistic, and
determine whether to reject Ho at a given SL.
LOS 8.d: Interpret the results of hypothesis tests of regression MODULE 8.2: HYPOTHESIS TESTS AND CONFIDENCE INTERVALS
coefficients.
The 10% 2TT critical t-value with 46-2-1 = 43df is 1.68
Decision rule: Reject Ho is if -1.68 > t > 1.68
So? t-statistic (7.8) > the upper critical t-value (1.68)
Meaning/interpretation?
Reject Ho, and? Conclude that the PR regression coefficient is statistically significantly different from zero
at the 10% significance level.
