Question

In testing H0: B1 = B2 = B3 = 0 against the alternative, a pvalue of 0.0001 and alpha of 0.01 would give an indication that:

		the null hypothesis should not be rejected
		the null hypothesis should be rejected
		all three independent variables have a slope of zero
		there is no linear relationship between y and any of the three independent variables
		none of the above

Answer 1

For any hypothesis test, the decision rule is that if p value is less than (< ) , the Reject H0.

Here the p value = 0.0001 and = 0.01

Since p value (0.0001) is < 90.01, Option 2: The null Hypothesis should be rejected.

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Explanation for Option 3 and option 4

Option 3: All 3 variables have a slope of 0, is a null hypothesis. we have seen that the null has to be rejected, so this is not true.

Option 4: There is no linear relationship is the null hypothesis for testing correlation for karl pearsons r. Again this would have been the null hypothesis being true, which is not possible.

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