A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100). In a Multiple regression estimating turnover rate using average bonus and trust index, What is the correct null hypotheses for testing the regression coefficient of Trust Index?
A)$\beta _ { \mathrm { TI } } \neq 0$
B)$\mathrm { T }_{ \mathrm { TI } } = 0$
C)$\beta _ { \mathrm { TI } } = 0$
D)$\beta _ { \mathrm { TI } }

Question

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100). In a Multiple regression estimating turnover rate using average bonus and trust index, What is the correct null hypotheses for testing the regression coefficient of Trust Index? 
A)$\beta _ { \mathrm { TI } } \neq 0$
B)$\mathrm { T }_{ \mathrm { TI } } = 0$
C)$\beta _ { \mathrm { TI } } = 0$
D)$\beta _ { \mathrm { TI } } < 0$
E)$\mathrm { T }_ \mathrm { TI } \leq 0$

Quizplus · Accepted Answer

The null hypothesis for testing the regression coefficient of Trust Index is that the coefficient is equal to 0, meaning that there is no significant linear relationship between turnover rate and trust index when controlling for average bonus.

A Sample of 33 Companies Was Randomly Selected and Data βTI≠0\beta _ { \mathrm { TI } } \neq 0βTI​=0

A Sample of 33 Companies Was Randomly Selected and Data $\beta _ { \mathrm { TI } } \neq 0$