In: Statistics and Probability
Assume that you observe (0,1),(1,2),(3,1),(4,3) from a simple linear model.
a). Construct a 95% confidence interval for β1 and determine its margin error.
b). Test H0 : β0 = 2 versus H1 : β0 < 2 at α = 0.01 level of significance.
c). Find the power of the test from part b) at β0 = 1.
a). Construct a 95% confidence interval for β1 and determine its margin error.
The 95% confidence interval for β1 is between -1.0086 and 1.6086.
The margin error is 0.3041.
b). Test H0 : β0 = 2 versus H1 : β0 < 2 at α = 0.01 level of significance.
t = 2/0.775403 = 2.58
p-value = 0.0616
Since the p-value (0.0616) is greater than the significance level (0.01), we fail to reject the null hypothesis.
Therefore, we can conclude that β0 = 2.
c). Find the power of the test from part b) at β0 = 1.
Power = 0.1287
r² | 0.327 | |||||
r | 0.572 | |||||
Std. Error | 0.962 | |||||
n | 4 | |||||
k | 1 | |||||
Dep. Var. | y | |||||
ANOVA table | ||||||
Source | SS | df | MS | F | p-value | |
Regression | 0.9000 | 1 | 0.9000 | 0.97 | .4279 | |
Residual | 1.8500 | 2 | 0.9250 | |||
Total | 2.7500 | 3 | ||||
Regression output | confidence interval | |||||
variables | coefficients | std. error | t (df=2) | p-value | 95% lower | 95% upper |
Intercept | 1.1500 | 0.775403 | ||||
x | 0.3000 | 0.3041 | 0.986 | .4279 | -1.0086 | 1.6086 |