ONLY PART C PLEASE Suppose you fit the model y = beta_) + beta_1 + beta_2 x_2 +

Question

ONLY PART C PLEASE

Suppose you fit the model y = beta_) + beta_1 + beta_2 x_2 + beta_3 x_3 + element to n = 30 data points and obtain the following result: The estimated standard errors of beta_2 are 1.86 and .29, respectively. a. Test the null hypothesis H_0: beta_2 = 0 against the alternative hypothesis H_a: beta_2 notequalto 0. Use alpha = .05. b. Test the null hypothesis H_0: beta_3 = 0 against the alternative hypothesis H_a: beta_3 notequalto 0. Use alpha alpha = .05. c. The null hypothesis H_0: beta_2 = 0 is not rejected. In contrast, the null hypothesis H_0: beta_3 = 0 is rejected. Explain how this can happen even though beta_2 > beta_3.

Explanation / Answer

z stastic for B2 = 2.7/1.86 = 1.45

Z stastic for B3 = 0.93/0.29 = 3.20

Since,B3 has a higher z stastic than B2, B2 is not rejected while B3 is rejected.

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