Question: Consider the standardized variable z = b1 1 /Sxx . a. Identify its distribution. b. Why cant it be used as the test statistic
Consider the standardized variable z = b1 − β1
σ/√Sxx
.
a. Identify its distribution.
b. Why can’t it be used as the test statistic for a hypothesis test concerning β1?
c. What statistic is used? What is the distribution of that statistic?
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