If you are testing the null hypothesis, you are testing
A)the hypothesis that the coefficient for an explanatory variable is zero and therefore has no impact on your results.
B)whether or not price should be set to 0.
C)the relationship between the t-statistic and the standard error.
D)the hypothesis that setting a given price will yield no increase in profits.

Question

Quizplus · Accepted Answer

Testing the null hypothesis involves testing whether the coefficient for an explanatory variable is zero, which implies that the variable has no impact on the dependent variable being tested. This is the fundamental basis of hypothesis testing in regression analysis.

If You Are Testing the Null Hypothesis, You Are Testing