If you wanted to test, using a 5 % significance level, whether or not a specific slope coefficient is equal to one, then you should
A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96 .
B) add and subtract 1.96 from the slope and check if that interval includes 1 .
C) see if the slope coefficient is between 0.95 and 1.05 .
D) check if the adjusted $R ^ { 2 }$ is close to 1 .

Question

If you wanted to test, using a  5 %  significance level, whether or not a specific slope coefficient is equal to one, then you should
A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than  1.96 .
B) add and subtract  1.96  from the slope and check if that interval includes 1 .
C) see if the slope coefficient is between  0.95  and  1.05 .
D) check if the adjusted  $R ^ { 2 }$ is close to 1 .

Quizplus · Accepted Answer

To test if a slope coefficient is equal to one, you perform a t-test by subtracting 1 from the estimated coefficient, dividing by the standard error, and comparing the result to the critical value (1.96 for a 5% significance level in a two-tailed test).

If You Wanted to Test, Using a 5 R2R ^ { 2 }R2

If You Wanted to Test, Using a 5 $R ^ { 2 }$