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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