You want to test the hypothesis that a population parameter β of a regression model...

Vendor: PRMIA
Product: 8007
Update on: Jul 29, 2025
Questions: 132

PRMIA 8007 Question Answer

You want to test the hypothesis that a population parameter β of a regression model is zero. Your alternative hypothesis is that β≠0. Denote by SD(β) the estimated standard deviation of β, and by MEAN(β) the estimated mean of β. Which test statistic is appropriate, and what is its distribution?

test statistic = SD(β)/MEAN(β), normal distribution

test statistic = MEAN(β)/SD(β), normal distribution

test statistic = SD(β)/MEAN(β), t distribution

test statistic = MEAN(β)/SD(β), t distribution