When the model y = Bo+Bir+₂+u, was estimated, the 95 percent confidence inter- val for ₂ was (-0.12, 1.32). Based on this evidence, the hypothesis that a has no effect on O a can be rejected at the 5 percent significance level O b. we can draw no conclusion about the hypothesis without doing at test Oc cannot be rejected at the 5 percent significance level. O d. can be rejected at the 1 percent significance level.
When the model y = Bo+Bir+₂+u, was estimated, the 95 percent confidence inter- val for ₂ was (-0.12, 1.32). Based on this evidence, the hypothesis that a has no effect on O a can be rejected at the 5 percent significance level O b. we can draw no conclusion about the hypothesis without doing at test Oc cannot be rejected at the 5 percent significance level. O d. can be rejected at the 1 percent significance level.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![When the model y = Bo+Biru +₂2+u, was estimated, the 95 percent confidence inter-
val for ₂ was (-0.12, 1.32). Based on this evidence, the hypothesis that za has no effect on y
O a can be rejected at the 5 percent significance level.
O b. we can draw no conclusion about the hypothesis without doing at test
O cannot be rejected at the 5 percent significance level.
O d. can be rejected at the 1 percent significance level.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a60af14-570b-46e1-b857-6475c5d7e979%2F2323b887-7080-46ff-8421-caeededcb0b6%2Fwvcn5395_processed.jpeg&w=3840&q=75)
Transcribed Image Text:When the model y = Bo+Biru +₂2+u, was estimated, the 95 percent confidence inter-
val for ₂ was (-0.12, 1.32). Based on this evidence, the hypothesis that za has no effect on y
O a can be rejected at the 5 percent significance level.
O b. we can draw no conclusion about the hypothesis without doing at test
O cannot be rejected at the 5 percent significance level.
O d. can be rejected at the 1 percent significance level.
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