Question
How to run a t-test of :H0:beta=0
How to run a t-test of :H0:beta=0
Homework Answers
Answer #1
Let us denote
To test 
against 
: sample estimate of 
= standard error of estimate of
and n = sample size
The test statistic can be written as
which under H0 follows a t distribution with n-2 df.
We reject H0 at 5% level of significance if P-value < 0.05
where P-value 
where tobs : observed value of t statistic
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