The value for b 1 is given by the coefficient for the predictor variable Square Feet , which is To find out if this increase is statistically significant, we need to conduct a hypothesis test for B 1 or construct a confidence interval for B 1.
Note: A hypothesis test and a confidence interval will always give the same results. To construct a confidence interval for a regression slope, we use the following formula:.
To conduct a hypothesis test for a regression slope, we follow the standard five steps for any hypothesis test :. Step 2. Determine a significance level to use. Step 3. Find the test statistic and the corresponding p-value. We can find these values from the regression output:. Step 4. Reject or fail to reject the null hypothesis. Learn more. Is the significance of difference in slopes equivalent to the significance of the slope of the difference of two series?
Ask Question. Asked 6 years, 8 months ago. Active 6 years, 8 months ago. Viewed times. Improve this question. Community Bot 1. Add a comment. Active Oldest Votes. More generally - as in the case where you have two separate fitted lines - you don't have that. Improve this answer. I already had come to the answer from general reasoning, but it's always best to follow through a couple of lines of algebra to make sure.
This is not true for non-linear functions. The demand for a breakfast cereal can be represented by the following equation where p is the price per box in dollars:. Mathematicians and economists often use the Greek capital letter D or D as the symbol for change.
Slope shows the change in y or the change on the vertical axis versus the change in x or the change on the horizontal axis. It can be measured as the ratio of any two values of y versus any two values of x. This is a typical downward sloping demand curve which says that demand declines as price rises.
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