The number of observations is 32. At the 1% significance level, what is the (1) test statistic value; (2) the critical values; and (3) decision, regarding the null hypothesis that the beta coefficient on the market returns is equal to 1.61 ? test statistic = -2.6443 critical values = 2.5758 reject HO Otest statistic 2.6443 critical values 2.75 do not reject HO test statistic = 3.392 ; critical values 25758 do not reject HO test statistic 3.392 critical valucs-275 rcject HO

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Chapter1: Starting With Matlab
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Consider the coefficient estimates of the following market model linear regression of
General Motors (GM) on the S&P500 market returns,
Coefficients:
Estimate
Std. Error t value Prt>l)
(Intercept) 0.005860 0.003704 1582 0.12412
sp500
0.904753 0.266702 3.392 0.00196**
The number of observations is 32. At the 1% significance level, what is the (1) test
statistic value: (2) the critical values; and (3) decision, regarding the null hypothesis
that the beta coefficient on the market returns is equal to 1.61?
test statistic = -2.6443 critical values = 2.5758. reject HO
test statistic = -2.6443 critical values 2.75 do not reject HO
Ctest statistic = 3.392: critical values 25758 do not reject HO
tellstatisHE=:3.392 critical values =2.75 reject HO
Transcribed Image Text:Consider the coefficient estimates of the following market model linear regression of General Motors (GM) on the S&P500 market returns, Coefficients: Estimate Std. Error t value Prt>l) (Intercept) 0.005860 0.003704 1582 0.12412 sp500 0.904753 0.266702 3.392 0.00196** The number of observations is 32. At the 1% significance level, what is the (1) test statistic value: (2) the critical values; and (3) decision, regarding the null hypothesis that the beta coefficient on the market returns is equal to 1.61? test statistic = -2.6443 critical values = 2.5758. reject HO test statistic = -2.6443 critical values 2.75 do not reject HO Ctest statistic = 3.392: critical values 25758 do not reject HO tellstatisHE=:3.392 critical values =2.75 reject HO
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