Chapter 16
Tests in Regression Analysis
Regression analysis investigates and models the relationship between variables. A linear relationship is assumed between a dependent or response variable 
of interest and one or several independent, predictor or regressor variables. We present tests on regression parameters in simple and multiple linear regression analysis. Tests cover the hypothesis on the value of individual regression parameters as well as tests for significance of regression where the hypothesis states that none of the regressor variables has a linear effect on the response.
16.1 Simple linear regression
Simple linear regression relates a response variable 
to the given outcome 
of a single regressor variable by assuming the relation 
, which is linear in unknown coefficients or parameters 
and 
. Further is an error term which models the deviation of the observed values from the ...
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