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QUESTION

Carry your intermediate computations to at least three decimal places and round your answers as specified in the table.

(1) The null hypothesis: H0:___________

(2) The alternative hypothesis: H1:____________

(3) The type of test statistic: (Choose one) Z OR t OR Chi square OR F

If applicable, what are the values for degrees of freedom, dfn and dfd?

(4) The value of the test statistic:
(Round to at least two decimal places.)

(5) The two critical values at the 0.05 level of significance:
(Round to at least two decimal places.): _________and___________

Yes OR No

SCREENSHOT:

Using observations on each variable, a computer program generated the following multiple regression model:

If the standard errors of the coefficients of the independent variables are, respectively,

, , , and ,

can you conclude that the independent variable is needed in the regression model?
Let denote the coefficients of the variables in this model, and use a two-sided hypothesis test and significance level of to determine your answer.

Carry your intermediate computations to at least three decimal places and round your answers as specified in the table.

Explanation / Answer

Answers to the question:

1. H0: B = 0

2. Ha: B !=0

3. We use t as n<30.
df = 9-1-8

4.t = B/SE = 5.55-0/4.66 = 1.19

5. -2.306 and 2.306 ( we lookup the t tables for df=8 and 2 tailed alpha=.05)

6. NO, not needed.
We can conclude that X2 is NOT required given it is insignificant.
The t statistic of 1.19 is in non critical region and hence we do not reject null hypothesis, meaning we conclude B=0, and hence X2 has no weightage in the linear regression

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