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Suppose we have sample data on (y,x) of size n. Consider regressing y on x and a constant using the least square method (OLS estimation). The estimated equation is y = 2.59 +5.19 x + e where e is the residual. The standard errors for the constant and the coefficient were 0.51 and 1.58 respectively. To test the null hypothesis of zero coefficient (for x) at a given significance level, we may use t-statistic. Compute the t-statistic for the coefficient. Make sure the answer is round up to the nearest hundredth. e.g. 3.015 --> 3.02

Suppose we have sample data on (y,x) of size n. Consider regressing y on x and a constant using the least square method (OLS estimation). The estimated equation is y = 2.59 +5.19 x + e where e is the residual. The standard errors for the constant and the coefficient were 0.51 and 1.58 respectively. To test the null hypothesis of zero coefficient (for x) at a given significance level, we may use t-statistic. Compute the t-statistic for the coefficient. Make sure the answer is round up to the nearest hundredth. e.g. 3.015 --> 3.02

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose we have sample data on (y,x) of size n. Consider regressing y on x and a constant using the least square method (OLS estimation). The estimated equation is y = 2.59 +5.19 x + e where e is the residual. The standard errors for the constant and the coefficient were 0.51 and 1.58 respectively. To test the null hypothesis of zero coefficient (for x) at a given significance level, we may use t-statistic. Compute the t-statistic for the coefficient. Make sure the answer is round up to the nearest hundredth. e.g. 3.015 --> 3.02
Transcribed Image Text:Suppose we have sample data on (y,x) of size n. Consider regressing y on x and a constant using the least square method (OLS estimation). The estimated equation is y = 2.59 +5.19 x + e where e is the residual. The standard errors for the constant and the coefficient were 0.51 and 1.58 respectively. To test the null hypothesis of zero coefficient (for x) at a given significance level, we may use t-statistic. Compute the t-statistic for the coefficient. Make sure the answer is round up to the nearest hundredth. e.g. 3.015 --> 3.02
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