Hypthesis Testing

Question 1

Steps in test of significance

Answer 1

Calculate test statistic using formula- b-b*/se(b)

Compare to t tables- t-2

Question 2

Confidence intervals

Answer 2

Similar to test of sig-
B+ t crit value x se(b)
B- t crit value x se(b)

Question 3

Type 1 and 2 errors

Answer 3

Type 1- reject Null when its true

Type- not rejecting null when it’s false

Question 4

If reject null

Answer 4

Result of test is statistically significant

Question 5

Increase size of test

Answer 5

More type 1 error, less strict rejection criteria, reject null more

Question 6

Reduce size of test

Answer 6

Strict rejection criteria, reject null less- less type 1, more type 2

Question 7

F test

Answer 7

Unrestricted, can test more than one coefficient

Is the square of t test

Question 8

F test statistic

Answer 8

RRSS- URSS/URSS X T-K/M

Restricted- unrestricted/unrestrictive
X sample size-parameters/restrictions

Question 9

Which must be bigger in residual sum of squares

Answer 9

RRSS less than or equal to it’s