51.5k views
3 votes
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. see if the slope coefficient is between 0.95 and 1.05.
B. check if the adjusted R2 is close to 1.
C. subtract 1 from the estimated​ coefficient, divide the difference by the standard​ error, and check if the resulting ratio is larger than 1.96.
D. add and subtract 1.96 from the slope and check if that interval includes 1.

User Reino
by
8.1k points

1 Answer

4 votes

Answer:

If you wanted to​ test, using a​ 5% significance​ level, whether or not a specific slope coefficient is equal to​ one, then you should subtract 1 from the estimated​ coefficient, divide the difference by the standard​ error, and check if the resulting ratio is larger than 1.96 .

Option B is the correct answer.

Explanation:

If you wanted to​ test, using a​ 5% significance​ level, whether or not a specific slope coefficient is equal to​ one, then you should subtract 1 from the estimated​ coefficient, divide the difference by the standard​ error, and check if the resulting ratio is larger than 1.96.

Option B is correct because after subtracting it from 1, it will become a standardized test if the slope is equal to 0 or not.

User Bagusflyer
by
9.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories