The linear regression in problem 1 is estimated using 26 observations on R and W. The least-squares estimate of b is 40.495, and the standard error of the estimate is 16.250.
Perform a t-test for statistical significance at the 5 percent level of significance.
a. There are________ degrees of freedom for the t-test.
b. The value of the t-statistic is________. The critical t-value for the test is________.
c. Is b̂ statistically significant? Explain.
d. The p-value for the t-statistic is________. (In this problem, the t-table provides the answer.) The p-value gives the probability of rejecting the hypothesis that ________ (b = 0, b ≠ 0) when b is truly equal to________ . The confidence level for the test is________  percent.
e. What does it mean to say an estimated parameter is statistically significant at the 5 percent significance level?
f. What does it mean to say an estimated parameter is statistically significant at the 95 percent confidence level?
g. How does the level of significance differ from the level of confidence?