Consider the linear regression model Y; = Bo + BịX; + U; for each i = 1, ..., n with n = 1,000. X; represents the annual income of individual i (measured in $10,000) and Y; represents the home size (measured in square feet). We run an OLS regression and get: B1,n = 43.2, SE(B1,n) = 10.2, Bon 0,n = 700, SE(Bon) = = 7.4. Suppose that we want to test Ho : B1 = 0 against Hị : B1 > 0 at 5% significance level. Assuming that the sample size is large enough, which critical value z should we use? O a. z = 1.64 O b. z = -1.64 z = -1.96 C. Od. z = 1.96
Consider the linear regression model Y; = Bo + BịX; + U; for each i = 1, ..., n with n = 1,000. X; represents the annual income of individual i (measured in $10,000) and Y; represents the home size (measured in square feet). We run an OLS regression and get: B1,n = 43.2, SE(B1,n) = 10.2, Bon 0,n = 700, SE(Bon) = = 7.4. Suppose that we want to test Ho : B1 = 0 against Hị : B1 > 0 at 5% significance level. Assuming that the sample size is large enough, which critical value z should we use? O a. z = 1.64 O b. z = -1.64 z = -1.96 C. Od. z = 1.96
MATLAB: An Introduction with Applications
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![Consider the linear regression model Y; = Bo + BịX; + U; for each i = 1, ..., n with n = 1,000. X; represents the annual income of
individual i (measured in $10,000) and Y; represents the home size (measured in square feet). We run an OLS regression and get:
B1,n
= 43.2, SE(B1,n) = 10.2,
Bon
0,n = 700, SE(Bon) =
= 7.4.
Suppose that we want to test Ho : B1 = 0 against Hị : B1 > 0 at 5% significance level. Assuming that the sample size is large enough, which
critical value z should we use?
O a.
z = 1.64
O b.
z = -1.64
z = -1.96
C.
Od.
z = 1.96](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a398711-6bb1-446b-9b69-373cfacdd600%2F243d9805-1bcb-443a-b57d-b03f33828a3f%2F5l7j1aj_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the linear regression model Y; = Bo + BịX; + U; for each i = 1, ..., n with n = 1,000. X; represents the annual income of
individual i (measured in $10,000) and Y; represents the home size (measured in square feet). We run an OLS regression and get:
B1,n
= 43.2, SE(B1,n) = 10.2,
Bon
0,n = 700, SE(Bon) =
= 7.4.
Suppose that we want to test Ho : B1 = 0 against Hị : B1 > 0 at 5% significance level. Assuming that the sample size is large enough, which
critical value z should we use?
O a.
z = 1.64
O b.
z = -1.64
z = -1.96
C.
Od.
z = 1.96
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