Test for Significance of Slope – Fresh Take

  • Perform a test for significance of slope and interpret the results
  • Check the conditions that are necessary to perform a test for significance of slope
Steps for Hypothesis Testing for Significance of Slope:

  1. Write out the null and alternative hypotheses.
    • Null Hypothesis: [latex]\beta_1 = 0[/latex]
    • Alternative Hypothesis: [latex]\beta_1 \ne 0[/latex]
  2. Check the conditions for the hypothesis test. For testing a one-sample z-test for proportions, we require:
    • A random sample of data
    • A linear trend
    • No obvious trends in the residual plot
  3. Calculate the test statistic: [latex]t=\dfrac{b-0}{[\text{std. error of }b]} = \dfrac{b}{SE_b}[/latex]
  4. Calculate a P-value.
  5. Compare the P-value to the significance level, [latex]\alpha[/latex], to make a decision.
    Decision Conclusion
    If P-value [latex]\le\alpha[/latex], there is enough evidence to reject the null hypothesis. At the [latex]\alpha\times[/latex]100% significance level, the data provide convincing evidence in support of the alternative hypothesis.
    If P-value [latex]\gt\alpha[/latex], there is not enough evidence to reject the null hypothesis. At the [latex]\alpha\times[/latex]100% significance level, the data do not provide convincing evidence in support of the alternative hypothesis.
  6. Write a conclusion in context (e.g., we do/do not have convincing evidence…).