Question: Verify that if each xi is multiplied by a positive constant c and each yi is multiplied by another positive constant d, the t statistic
Verify that if each xi is multiplied by a positive constant c and each yi is multiplied by another positive constant d, the t statistic for testing H0: β1 = 0 versus Ha: β1 ≠ 0 is unchanged in value (the value of will change, which shows that the magnitude of b ^ 1 is not by itself indicative of model utility)?
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