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Predictor Coef St. dev. T P

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  1. Predictor Coef St. dev. T P
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Constant 87.92 13.96 6.30 0.000

X1 -3.3869 0.9930 -3.41 0.011

X2 2.327 2.264 1.03 0.338

We are to test the following null and alternative hypotheses

The decision rule is

reject if

From solution we obtain that . It also can be found as

Since , we accept the null hypothesis. Consequently, we conclude that the slope of in regression model is zero. That is, the number of driving violations is not significant and an increase (or decrease) in the number of driving violations does not affect the auto insurance premium.

Remark:

Note that the observed value of test statistic T (test statistic t) is obtained from the MINITAB solution only if the null hypothesis is . However, if the null hypothesis is that is equal to a number other than zero, then the t value obtained from the MINITAB solution is no longer valid. In this case observed value of the test statistic will be calculated as


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Читайте в этой же книге: Standard assumptions for the multiple regression models | The coefficient of determination | Adjusted coefficient of determination | Exercises | Computer solution of multiple regressions | Predictor Coef St. dev. T P | Predictor Coef St. dev. T P | Confidence interval for individual coefficients | Predictor Coef St. dev. T P | Source DF SEQ SS |
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Test of hypothesis about individual coefficients| Tests on sets of regression parameters

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