Question 131362: I am a student seeking assistance with a statistics problem, with which I am honestly struggling...have done well so far in this course but am not grapsing this one problem. Hope you can help.
It is as follows:
Suppose a regression output produces the following 99% confidence interval for
one of the regression coefficients:
[-32.47, -16.88]
Given this information, should an analyst reject the null hypothesis that this
population regression coefficient is equal to 0? Explain your answer.
So far, this is the direction I've taken, but for some reason, I am stumped.
Regression Coefficient -32.47
Confidence Level 99%
Compute alpha (α): α = 1 - (confidence level/100)
α = 1 - (99/100)
Find critical probability (p*): p*=1-α/2
p* = 1- 0.01/2
Compute margin of error = critical value x standard error of statistic
Find t-score (α-(confidence level/100))
t-score = 1-0.099
Find critical probability (p*): p*=1-α/2
p* = 1- 0.01/2 0.995
Calculate the t-value (Assume a mean of 0 and stad deviation of 1)
t-value = X-μ0 2.575829304 Assume mean of 0, standard deviation of 1
s/√n
NORMINV(0.995,0,1) = 2.58
Your help will be greatly appreciated. Would you let me know how much I would
owe you for the assistance?
Thanks!
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! It is as follows:
Suppose a regression output produces the following 99% confidence interval for
one of the regression coefficients:
[-32.47, -16.88]
Given this information, should an analyst reject the null hypothesis that this
population regression coefficient is equal to 0? Explain your answer.
---------------------------
Yes, he can reject that hypothesis with 99% confidence because zero is
not in the 99% confidence interval.
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Cheers,
Stan H.
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