 THE NUMBER OF OBSERVATIONS

2-tail testing :

H

0

: j= j*

H

1

: j≠ j

Our data has :

The number of observations : n = 64

The number of variables : k = 7

Degree of freedom = n - k = 57

Level of significance : / 2 = 0.025

Searching in the Significance level table of t-student distribution, we have:

t

ob

2.00

Basing on the result of t-ratio ( t statistic) and p-value on the Figure 6.1

above calculated thanks to Gretl, we come to test hypothesis relating to regression

a coefficient.