00:01
So generally speaking, the steps for doing a hypothesis test of this nature would be we first declare our null and alternate hypotheses.
00:09
The null hypothesis would be that beta 1 equals 0.
00:13
The alternate hypothesis is that beta 1 does not equal 0.
00:18
So that's step 1.
00:21
Step 2, and this varies, it depends on the sort of approach that you typically use.
00:27
But with the way that i typically do things, step 2 would be to.
00:30
Find our test statistic, which for this type of test is a t value.
00:41
And then step three, we find the p value, the probability of a, in this case, it would be the probability of the magnitude of a generic t score being greater than the magnitude of our calculated test statistic.
00:59
So to make things easy here, i'll use excel to do do these calculations.
01:06
So we have, i'll just copy down the data into excel here.
01:10
In a moment, 978, 99.
01:13
And y, we have 3, 7, 10, 10, 8, 9, 4, 15, 15.
01:18
So we'll go to data, data analysis...