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CFA Level 2
Quantitative Methods

Hypothesis Testing in Multiple Regression Analysis

Very Easy Multiple Regression Analysis Hypothesis Testing

In a multiple regression analysis, a researcher is testing the hypothesis that a particular independent variable has no effect on the dependent variable. The null hypothesis ($H_0$) states that the coefficient of this independent variable equals zero ($\beta = 0$). If the p-value associated with the test is less than the significance level ($\alpha = 0.05$), what conclusion can the researcher draw from this test?

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