hypothesis test(1).png  

In the simple linear regression model (Y_i=β_0+β_1 X_i+u_i), the slope represents the

In simple linear regression, the coefficient of covariance and the OLS estimate of population slope:

Using a regression of test scores of 420 California school districts on the student-teacher ratio, you find that the standard error on the slope coefficient is 0.51 when using the heteroskedasticity robust formula, while it is 0.48 when employing the homoskedasticity only formula. When calculating the t-statistic, the recommended procedure is to:

The error term is assumed to be a random variable with an expected value of zero, and this assumption implies that the variance of Y about the regression line is the same for all values of X.

Excessive or rapid breathing:

hypothesis test(1).png  

Using a regression of test scores of 420 California school districts on the student-teacher ratio, you find that the standard error on the slope coefficient is 0.51 when using the heteroskedasticity robust formula, while it is 0.48 when employing the homoskedasticity only formula. When calculating the t-statistic, the recommended procedure is to:

You are interested in the effect of number of homeruns (HomeRun) on the number of wins (Wins) in 2005 Major League Baseball (MLB) season. Using 2005 MLB data (aggregated at the team level), you run a simple linear regression and get the following results from Stata. MLB2005 ShortAnswerQuestion(1).png Using the Stata output above and α =0.05, answer the following questions.  (a) Develop the null and the alternative hypothesis of the slope coefficient significance test.  (b) Compute the test statistic.  (c) Findf the critical value. (d) Based on your answers above, conclude whether you reject or do not reject the null hypothesis.  (e) Compute the R2.  (f) Construct 95% confidence interval for the slopep coefficient. 

No sense of smell: