t-test

Problem

Data: \video\data/Final.xlsx

Suppose that you have a random sample, the Gauss-Markov assumptions hold and the errors are normally distributed.

Run a regression of FINAL on HSGPA. Test the null hypothesis \(H_0:β_2=0\) at \(α=0.05\) .

Solution

\(p\) -value is 0.235 so do not reject \(H_0\)

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STATA: