Consider the estimated equation from Example 4.3, which can be used to study the

Question

Consider the estimated equation from Example 4.3, which can be used to study the effects of skipping class on college GPA: colGPA = 1.39 + .412 hsGPA + .015 ACT - .083 skipped (.33) (.094) (.011) (.026) n = 141, R^2 = .234. (i) Using the standard normal approximation, find the 95% confidence interval for beta_hsCPA. (ii) Can you reject the hypothesis H_0: beta_hsGPA = .4 against the two-sided alternative at the 5% level? (iii) Can you reject the hypothesis H_0: beta_hsGPA = 1 against the two-sided alternative at the 5% level?

Explanation / Answer

Part-I

95% confidence intevral for beta_hsgpa=beta_hat±1.96*SE(beta_hat)

= 0.412±1.96*0.094

=(0.2278               0.5962)

Part-II

As the 95% confidence interval for beta_hsgpa includes 0.4, we have not enough evidence to reject the null hypothesis at 5% level of significance two tailed test.

Part-III

As the 95% confidence interval for beta_hsgpadoes not include 1, we have enough evidence to reject the null hypothesis at 5% level of significance two tailed test.

Part-I

95% confidence intevral for beta_hsgpa=beta_hat±1.96*SE(beta_hat)

= 0.412±1.96*0.094

=(0.2278               0.5962)

Part-II

As the 95% confidence interval for beta_hsgpa includes 0.4, we have not enough evidence to reject the null hypothesis at 5% level of significance two tailed test.

Part-III

As the 95% confidence interval for beta_hsgpadoes not include 1, we have enough evidence to reject the null hypothesis at 5% level of significance two tailed test.

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