(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

I have used OLS and found that:

b0 = 6,85

b1 = 3,88 with se= 0,1121

n = 20

Person x claims that b1 = 5

Choose an alternative hypothesis. Does your estimated relationship support this claim?

Use a 5 % significance level

3. The attempt at a solution

H0 = b1 = 5

H1 b1!= 5

t((1-a)/2,18) = 2,101

t = ([tex]\overline{x}[/tex] - h0)/se(b1) = (3,88 - 5)/(0.1122) = -9.99

t lies not in the interval +- 2,101 so I reject H0

Is this correct?

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# Homework Help: Hypothesis testing

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