Answered step by step
Verified Expert Solution
Question
1 Approved Answer
why say in this case is statistically significant at the 95% confidence level. How to compare? For a sample of 400 firms, the relationship between
why say in this case is statistically significant at the 95% confidence level. How to compare?
For a sample of 400 firms, the relationship between corporate revenue (Y_i) and the average years of experiences employee (X_i) is modeled as follows: Y_i = beta_1 + beta_2 X_i + epsilon_i, i -= 1, 2, ..., 400 You wish to test the joint null hypothesis that beta = 0 and beta = 0 at the 95% confidence level. The p-value for the t-statistic for beta_1 is 0.07, and the p-value for the t-statistic for beta_2 is 0.06. The p-value for the F-statistic for the regression is 0.045. Which of the following statements is correct? You can reject the null hypothesis because each p is different from 0 at the 95% confidence level. You cannot reject the null hypothesis because neither p is different from 0 at the 95% confidence level. You can reject the null hypothesis because the F-statistic is significant at the 95% confidence level. You cannot reject the null hypothesis because the F-statistic is not significant at the 95% confidence level. Explanation: The T-test would not be sufficient to test the joint hypothesis. In order to test the joint null hypothesis, examine the F-statistic, which in this case is statistically significant at the 95% confidence level. Thus the null can be rejectedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started