Test for Significance Test for Individual Significance: t test ypothesis H0:B1=0 HG:B1≠0 Test statistic Decision rule: reject the null hypothesis at a level of significance if 2),Or p-values a Slide 8Slide 8 Test for Significance • Test for Individual Significance: t test – Hypothesis – Test statistic – Decision rule: reject the null hypothesis at α level of significance if • , or • p-value < α : 0 : 0 0  = a i i H H   i b i s b t = ) 2 ( 1;  − −  n p t t