"The output of an estimated regression equation shows the t-statistic for a given coefficient associated with an independent variable to be 1.99."
Explain the implications of this statement in the context of ordinary least squares regression? Be sure your answer includes a discussion of hypothesis testing.© BrainMass Inc. brainmass.com March 4, 2021, 6:00 pm ad1c9bdddf
For linear regression model: Yt=β0+β1X1 +......+βkXk,t+Ut
Xt is a set of independent variables; Yt is the dependent variable. βt are unknown population coefficients; Ut is a disturbance term which captures the error between X and Y.
The estimation of the model is: Yt=b0+b1X1,t +......+bkXk,t +et
Bk is the sample estimate of βk; et is the residual.
Here Bk is estimated by minimizing the sum of squared errors, and referred to as ...
The solution explains the implications of this statement in the context of ordinary least squares regression.