4 COEFFICIENT Β3NULL HYPOTHESIS
5.4 Coefficient β
3
Null hypothesis:
: β
3
=0
Alternative hypothesis: H
1
: β
3
≠0
From the chart above, we see:
We have:
, And p-value = 0.0025
Moreover ,*** means that the statistical significance of const equals to 1%
At 5% level of significance, we have enough evidence to reject
: β
3
=0
β
3
has meaning in model