Loading...
CFA Level 2
Quantitative Methods

Multiple Regression Hypothesis Testing

Easy Multiple Regression Analysis Hypothesis Testing

Consider a multiple regression analysis where a researcher is studying the relationship between a dependent variable, $Y$, and two independent variables, $X_1$ and $X_2$. The model is specified as follows:

$$ Y = \beta_0 + \beta_1 X_1 + \beta_2 X_2 + \epsilon $$

The researcher wants to test the null hypothesis that the coefficient for $X_1$ is equal to zero against the alternative hypothesis that it is not equal to zero. After performing the regression analysis, the t-statistic for $\beta_1$ is calculated to be 2.5, and the degrees of freedom is 18. Based on a significance level of 0.05, what can be concluded from the hypothesis test?

Hint

Submitted2.7K
Correct2.5K
% Correct91%