January 2017
Beginner
882 pages
203h 41m
English
... such cases, use the closest table with fewer degrees of freedom. In this case, that means the table with 100 degrees of freedom. The observed t-statistic 2.898 in this example lies between t = 2.626 and t = 3.174 in the first column of Table 16.2, implying that the p-value is between 0.001 and 0.005. In fact, software computes the p-value to be 0.0023.
Table 16.2 Percentiles of the t-distribution (a larger table is inside the back cover). |
Because the p-value is less than the chosen level α = 0.01, the firm rejects H0 and concludes that average rents in San Francisco exceed the break-even amount $2,000. ...