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An economist uses the regression model Inflation = f(unemployment) to test the Phillips Curve theory on South African data. A slope of-0.21 is estimate and the economist wants to do a hypothesis test to check whether the true value is negative. Would it be appropriate to conduct a two-sided test on the slop parameter? What would the appropriate Ho and H be? O A. Yes, because the slope could be either negative or positive and the hypothesis test is based on the t distribution which takes negative or positive value H. = 0 and H, +0. O B. Yes, because the only test of interest is whether the slope estimate is equal to zero or not. Ho = 0 and H # 0. O C. No, it is important to test whether the slope parameter is positive. H = 0 and H1 > 0. O D. No, because the theory suggests a negative slope, therefore it is of interest whether or not the B2 coefficient is negative rather than different from ze Ho = 0 and H <0. O E. Yes, because the theory suggests a negative slope, therefore it is of interest to determine whether the slope coefficient is different from zero. Ho = and H #0.

An economist uses the regression model Inflation = f(unemployment) to test the Phillips Curve theory on South African data. A slope of-0.21 is estimate and the economist wants to do a hypothesis test to check whether the true value is negative. Would it be appropriate to conduct a two-sided test on the slop parameter? What would the appropriate Ho and H be? O A. Yes, because the slope could be either negative or positive and the hypothesis test is based on the t distribution which takes negative or positive value H. = 0 and H, +0. O B. Yes, because the only test of interest is whether the slope estimate is equal to zero or not. Ho = 0 and H # 0. O C. No, it is important to test whether the slope parameter is positive. H = 0 and H1 > 0. O D. No, because the theory suggests a negative slope, therefore it is of interest whether or not the B2 coefficient is negative rather than different from ze Ho = 0 and H <0. O E. Yes, because the theory suggests a negative slope, therefore it is of interest to determine whether the slope coefficient is different from zero. Ho = and H #0.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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An economist uses the regression model Inflation = f(unemployment) to test the Phillips Curve theory on South African data. A slope of -0.21 is estimated, and the economist wants to do a hypothesis test to check whether the true value is negative. Would it be appropriate to conduct a two-sided test on the slope parameter? What would the appropriate Ho and H1 be? O A. Yes, because the slope could be either negative or positive and the hypothesis test is based on the t distribution which takes negative or positive values. Ho = 0 and H # 0. %3D O B. Yes, because the only test of interest is whether the slope estimate is equal to zero or not. Họ = 0 and H¡ # 0. O C. No, it is important to test whether the slope parameter is positive. Ho = 0 and H1 > 0. O D. No, because the theory suggests a negative slope, therefore it is of interest whether or not the B2 coefficient is negative rather than different from zero. Ho =0 and H1 < 0. Но O E. Yes, because the theory suggests a negative slope, therefore it is of interest to determine whether the slope coefficient is different from zero. Ho = and H1 #0.
Transcribed Image Text:An economist uses the regression model Inflation = f(unemployment) to test the Phillips Curve theory on South African data. A slope of -0.21 is estimated, and the economist wants to do a hypothesis test to check whether the true value is negative. Would it be appropriate to conduct a two-sided test on the slope parameter? What would the appropriate Ho and H1 be? O A. Yes, because the slope could be either negative or positive and the hypothesis test is based on the t distribution which takes negative or positive values. Ho = 0 and H # 0. %3D O B. Yes, because the only test of interest is whether the slope estimate is equal to zero or not. Họ = 0 and H¡ # 0. O C. No, it is important to test whether the slope parameter is positive. Ho = 0 and H1 > 0. O D. No, because the theory suggests a negative slope, therefore it is of interest whether or not the B2 coefficient is negative rather than different from zero. Ho =0 and H1 < 0. Но O E. Yes, because the theory suggests a negative slope, therefore it is of interest to determine whether the slope coefficient is different from zero. Ho = and H1 #0.
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