Question: If the coefficient 1 has a nonzero value, then it is helpful in predicting the value of the response variable. If 1 = 0,

If the coefficient β1 has a nonzero value, then it is helpful in predicting the value of the response variable. If β1 = 0, it is not helpful in predicting the value of the response variable and can be eliminated from the regression equation. To test the claim that β1 = 0 use the test statistic t = (b1 - 0)/sb1. Critical values or P-values can be found using the t distribution with n - (k + 1) degrees of freedom, where k is the number of predictor (x) variables and n is the number of observations in the sample. The standard error sb1 is often provided by software. For example, see the accompanying StatCrunch display for Example 1, which shows that sb1 = 0.071141412 (found in the column with the heading of "Std. Err." and the row corresponding to the first predictor variable of height). Use the sample data in Data Set 1 "Body Data" and the StatCrunch display to test the claim that β1 = 0. Also test the claim that β2 = 0. What do the results imply about the regression equation?

If the coefficient β1 has a nonzero value, then it is helpful

Step by Step Solution

3.32 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

In the provided statistical analysis you have the parameter estimates for a regression model with tw... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematical Applications for the Management Questions!