Suppose that

Yi,Xi

satisfy the assumptions specified

here

LOADING...

and in addition,

ui

is

N0,2u

and independent of

Xi.

A random sample of n =

13

is drawn and yields

Y=51.93+61.94X, R2=0.77, SER = 1.3
(5.7) (7.7)

Where the numbers in parentheses are the homoskedastic-only standard errors for the regression coefficients

0

and

1

respectively. Refer to the student t distribution with n

-

2 degrees of freedom to answer the following questions.Construct a 95% confidence interval for

0

using the student t distribution (with n

-

2 degrees of freedom) table available

here

LOADING...

.

The 95% confidence interval for

0

is

[enter your response here,

enter your response here].

(Round

your responses to two decimal

places)

Suppose you wanted to test the hypothesis that

1

equals 55 at the 5% level. That is,H0:1=55vs.H1:155Report the

t-statistic

for this test.The

t-statistic

is

enter your response here.

(Round

your response to two decimal

places)

Based on the

t-statistic

computed above, would you reject the null hypothesis at the 5% level?

A.

Yes.

B.

No.

Suppose you wanted to test that

1

equals 55 versus the alternative that

1

is greater than 55 at the 5% level. That is,H0:1=55vs.H1:1>55Based on the

t-statistic

of

0.90

computed above, would you reject the null hypothesis at the 5% level?

A.

No.

B.

Yes.