2. Hypothesis Testing in a Simple Linear Regression Context (20 points) with a s

Question

2. Hypothesis Testing in a Simple Linear Regression Context (20 points) with a sample of 62 individuals with similar education but different A r of training hypothesizes that hourly earnings, EARNINGS, may be related to hours of training, TRAINING, according to the relationship EARNINGS,+A.TRAINING,+E She is prepared to test the hypothesis Ho : A = 0 against the alternative Ha·A+ 0 at both the five-percent and one-percent levels of significance. What should she report i if A 0.30,s.e.(A)-0.12? ii) ifA=0.55,se()-0.12? iii) if A=0.10,se()-0.12? 1V

Explanation / Answer

t-critical = 2.00 for the level of significance of 5% and degrees of freedom =60.

If t calculated>t-critical =2.00. Then we reject the null hypothesis.

i) t- calculated = 0.30/0.12 = 2.5, Since t-calculated >2, therefore we reject the null.

ii) t-calculated = 0.55/0.12 = 4.58, Since t-calculated >2, therefore we reject the null.

iii) t-calculated = 0.10/0.12 = 0.83, Since t-calculated <2, therefore we do not reject the null.

iv) t-calculated = 0.27/0.12 = 2.25, Since t-calculated >2, therefore we reject the null.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.