Question

An analyst fitted normal error regression model (2.1) and conducted an F test of f31 = 0 versus f3, ¥ O. The P-value of the test was .033, and the analyst concluded Ha: f31 ¥ O. Was the a level used by the analyst greater than or smaller than .033? If the a level had been .01, what would have been the appropriate conclusion?

Answer 1

Answer:

α was greater than 0.033.

We conclude that there is insufficient evidence to reject the null hypothesis at 1% level of significance.

Step-by-step explanation:

We only reject the null hypothesis if our p-value is smaller than level of significance.We know that analyst  concluded that null hypothesis is rejected and Ha:β≠0. So, null hypothesis is only rejected when level of significance α is greater than p-value. Thus, the significance level α used by analyst was greater than 0.033

If the significance level would be 0.01 i.e. α =0.01, then the null hypothesis cannot be rejected because in this scenario p-value will be greater than level of significance i.e. 0.033>0.01 and null hypothesis is only rejected if p-value is smaller than α. Thus, we conclude that there is insufficient evidence to reject the null hypothesis at 1% level of significance.