In order to determine whether the coefficient in a simple linear regression model is significant or not, which null hypothesis do we propose?β0=0β0≠0β1=0β1≠0
Question
In order to determine whether the coefficient in a simple linear regression model is significant or not, which null hypothesis do we propose?β0=0β0≠0β1=0β1≠0
Solution
In a simple linear regression model, we are often interested in testing whether there is a significant relationship between the independent and dependent variables. This is done by testing the null hypothesis that the slope coefficient (β1) is equal to zero.
So, the correct null hypothesis we propose is: β1 = 0.
This hypothesis states that there is no relationship between the independent and dependent variables. If we reject this null hypothesis (i.e., if we find evidence that β1 ≠ 0), it suggests that there is a significant relationship between the variables.
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