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Discuss the t test and p value as a means of determining importance of regression parameters?

  1. Discuss the t test and p value as a means of determining importance of regression parameters?
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Answer #1

Hello,

t-value: t-value is calculated as the,

t=b/ standard error;

the sign of the t is depending upon the sign of the regression coefficients.

t-values and corresponding p-value is used to check the significance of the independent variables contribution to predict the dependent variable.

if p-value < alpha, then we reject the null hypothesis and conclude that the beta value is not zero.

The hypothesis to check the significance of the regression coefficient as,

H0:

H1:

from the t-test we will check the same and the decision rule as,

if p-value < alpha, then we reject the null hypothesis and conclude that the beta value is not zero.

Thanks

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