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beta=0

beta=0

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Hi team,
 
How did we decide what will be the null hypothesis here?

Also what does these 3 zeros signify for SAT score….as far as i know it means null hypo. is accepted here…please correct if wrong

Regards

1 Answer

365 Team
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Hi Jamie!
 
With a regression, you will always find some coefficients. Even if your regression has no relationship whatsoever, you will still get values for coefficients.
 
That is why, there is a hypothesis test: is this variable significant.
 
Numerically, this is expressed as: H0: beta = 0 (coefficient in front of the variable is 0 is equivalent to: the variable has no contribution to the model, because 0*variable = 0)
 
***
 
These tests are conducted for each variable that takes part into the analysis. So there is a p-value for SAT, but if we had other variables like: gender, age, etc. they would also have some p-values.
 
A p-value of 0.000 means that we reject the null hypothesis, so beta is NOT 0 (in other words, the coefficient has contribution to the model).
 
Best,
The 365 Team