ECON 3U03 Chapter Notes - Chapter 3: Confidence Interval, Null Hypothesis, Interval Estimation
12 Mar 2014
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The coefficient of exper indicates that on average a technical artist"s quality rating is increased up by 0. 076 for each extra year of experience. B: tc = t(0. 975, 22) = 2. 074, 95 % confidence interval for b2 is given by: b2 + Therefore 95% confient that the procedure we have used for constructing a confidence interval will yield an interval that include the true parameter b2. To test 02:0h = against 12:0,h we use the test statistic t = b2/se(b2) = 0. 076/0. 044 = 1. 727. The t critical value for a two tail test with n 2 = 22 degrees of freedom is 2. 074. Since 2. 074 < 1. 727 < 2. 074 we fail to reject the null hypothesis. To test 02:0h = against 12:0,h > we use the t-value from part (c), namely 1. 727t=, but the right-tail critical value (0. 95,22)1. 717ctt==. Since 1. 7271. 717>, we reject 0h and conclude that 2 is positive. Experience has a positive effect on quality rating.
