Question

Test H₀: β₂ = 1 vs. H₁: β₂ >1 if the following information from a simple regression is given: b₂ = 1.39, s_b2= 0.18, and n = 30.

• A.

  Reject H₀ for α = 0.005

• B.

  Reject H₀ for α = 0.025

• C.

  Reject H₀ for α = 0.01

• D.

  Unable to reject H₀ for α < 0.05

Answer 1

hypothesis:-

given data are:-

b₂ = 1.39, s_b2= 0.18, n = 30.

test statistic be-

degrees of freedom = (n-2) = (30-2) = 28

p value = 0.0195

[ from t distribution t for t = 2.1667, df = 28, one tailed test ]

decision:-

* for α = 0.005

p value = 0.0195 > 0.005

so, we fail to reject H₀

* for α = 0.025

p value = 0.0195 < 0.025

so, we reject H₀

* for α = 0.01

p value = 0.0195 > 0.01

so, we fail to reject H₀

so, the correct decision be:-

Reject H₀ for α = 0.025 (B)

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