Question

I have a linear regression project for class and am having trouble doing the T-test. I gathered data and now I'm just wondering how I would determine my hypothesis. Is it based on a p-value, do I have to find the t-statistic? I'm confused as in given problems the hypothesis is given? I know the level of significance is .10, so would that be my hypothesis (ho: beta =.10)?

Answer 1

As per your question

Null hypothesis: beta=0.10

So Alternative Hypothesis will be: beta not equal to 0.10

The Rejection or Acceptance doesn't depend upon p-value here but it totally depends upon t-value calculated as well tabulated value of t .

For this t-statistic must be calculated.

All Steps are Mentioned below how to calculate t-statistic and when to accept or reject is given.

i*If you are still in confusion then please comment.