a 3. The Test of Significance Approach (1) Atwo-tailed test Assume Ho: B2=0 and H: B2#0 Set t statistic: t= b2 B2(6.29) se(b,) Check t table to get the critical t value, if I t >critical t value, reject H Check the p value of the t statistic, if p <level of significance, reject (2) Aone-tailed test Ho: B2=0 and H: B2 <0 T test procedure is the same as the two-tailed test, just:◼ 3. The Test of Significance Approach 〈1〉 t test （1） A two-tailed test. Assume H0 :B2=0 and H1 :B2 ≠0. Set t statistic: t= (6.29) Check t table to get the critical t value, if∣t∣＞critical t value, reject H0 Check the p value of the t statistic, if p ＜level of significance , reject H0 （2）Aone-tailed test. H0 :B2=0 and H1 :B2<0; T test procedure is the same as the two-tailed test, just: tα/2 → tα se(b ) b B 2 * 2 − 2