Linear regression question If the range of the x-values are from x=100 to x=150, why might...

Linear regression question If the range of the x-values are from x=100 to x=150, why might we be reluctant to

use our data to perform a hypothesis test on β0?

Expert Solution

According to given problem;

We have only the X-values that are ranges from X=100 to X=150.and we don't have the value of dependent variable (say Y).

Now;

Therefore from provided picture we see that estimate of β depends also on dependent variable not only on explanatory variables.

Also;

from above picture we see that; the test statistic having a t-distribution .and Inn denominator of test statistic there is standard error of β which depends on dependent variables also.

Therefore from these we be reluctant to use our data to perform a hypothesis test on β0.

orchestra answered 1 year ago

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