Question

If you wanted to​ test, using a​ 5% significance​ level, whether or not a specific slope coefficient is equal to​ one, then you​ should:A.add and subtract 1.96 from the slope and check if that interval includes 1.B.subtract 1 from the estimated​ coefficient, divide the difference by the standard​ error, and check if the resulting ratio is larger than 1.96.C.see if the slope coefficient is between 0.95 and 1.05.D.check if the adjusted R squared is close to 1.

Answer 1

B.subtract 1 from the estimated​ coefficient, divide the difference by the standard​ error, and check if the resulting ratio is larger than 1.96.

Explanation:

Given that you wanted to​ test, using a​ 5% significance​ level, whether or not a specific slope coefficient is equal to​ one, then you​ should:

For 95% confi level Z critical =1.96

So we multiply the std error by 1.96 to get margin of error

Using confidence intervals we divided the slope difference by std error and check whether this absolute value is greater than 1.96

Hence option B is right

B.subtract 1 from the estimated​ coefficient, divide the difference by the standard​ error, and check if the resulting ratio is larger than 1.96.