Reading 8 Practice Question #8B- Multiple Regressions (Hypothesis Testing)
The question says:
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The Regression equation is
(Analyst following)i = b0 + b1Sizei + b2(D/E) + b3 S&Pi + Ei
Why is the null and alternative hypothesis H0: b3=0 and Ha: b3 not equal 0.
Why isn’t it a 1 tailed test. If we are testing “higher” shouldn’t it be a one sided test?
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