PO,n Suppose that we want to test Ho : B1 = 0 against H1 : ß1 # 0 at 1% significance level. Assuming that the sample size is large enough, which one of the following is true about the p-value of this test?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Author:Carter
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Chapter4: Equations Of Linear Functions
Section: Chapter Questions
Problem 4SGR
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Consider the linear regression model Y; = Bo + B1 X¡ + U¡ for each i
in $10,000) and Y; represents the home size (measured in square feet). We run an OLS regression and get:
1,..., n withn =
1,000. X; represents the annual income of individual i (measured
Bin = 43.2, SE(§ „) = 10.2,
Bon = 700, SE(Bom) = 7.4.
Suppose that we want to test Ho : B1
O against H1 : ß1 # 0 at 1% significance level. Assuming that the sample size is large enough, which one of the
following is true about the p-value of this test?
43.2
The p-value can be computed as P(-|
), where is the standard Normal CDF
10.2
а.
b. None of the answers
43.2
The p-value can be computed as (-
), where O is the standard Normal CDF
10.2
С.
43.2
d. The p-value can be computed as 20(--
), where O is the standard Normal CDF
10.2
Transcribed Image Text:Consider the linear regression model Y; = Bo + B1 X¡ + U¡ for each i in $10,000) and Y; represents the home size (measured in square feet). We run an OLS regression and get: 1,..., n withn = 1,000. X; represents the annual income of individual i (measured Bin = 43.2, SE(§ „) = 10.2, Bon = 700, SE(Bom) = 7.4. Suppose that we want to test Ho : B1 O against H1 : ß1 # 0 at 1% significance level. Assuming that the sample size is large enough, which one of the following is true about the p-value of this test? 43.2 The p-value can be computed as P(-| ), where is the standard Normal CDF 10.2 а. b. None of the answers 43.2 The p-value can be computed as (- ), where O is the standard Normal CDF 10.2 С. 43.2 d. The p-value can be computed as 20(-- ), where O is the standard Normal CDF 10.2
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