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14.46 Consider the standardized variable
z=b1-β1σ/Su
a. Identify its distribution.
b. Why can't it be used as the test statistic for a hypothesis test concerning β1 ?
c. What statistic is used? What is the distribution of that statistic?

Short Answer

Expert verified

(a) The slopes of all possible sample regression lines have a normal distribution.
(b) The value of σ is unknown.
(c) The t-distribution have standard error of the estimate.

Step by step solution

01

Part (a) Step 1: Given information

To Identify its distribution of z=b1-β1σ/Su

02

Part (a) Step 2: Explanation

The given value of the standardized variable as follows:

z=b1-β1σ/Su

Since its mean is β1and its standard deviation is σSxx, the distribution of slopes of all feasible sample regression lines.

The slopes of all possible sample regression lines have a normal distribution.

03

Part (b) Step 1: Given information

To find that the value z=b1-β1σ/Su can't it be used as the test statistic for a hypothesis test concerning.

04

Part (b) Step 2: Explanation

The given value of the standardized variable as follows:

z=b1-β1σ/Su
Here the value of σ is unknown.

05

Part (c) Step 1: Given information

To explain the statistic is used and the distribution of the statistic.

06

Part (c) Step 2: Explanation

The given value of the standardized variable as follows:

z=b1-β1σ/Su

The estimate's standard error, which has a t-distribution, is used.
As a result, the estimate's standard error, or t-distribution

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