... test of H0: β0 = 0 tell us that β0 is statistically significantly larger than zero.
The t-statistic and p-value in the second row of Table 21.1 test the null hypothesis H0: β1 = 0; this test considers the population slope rather than the intercept. The t-statistic in this row shows that b1 lies b1/se(b1) = 16.37 standard errors above zero. That’s unlikely to happen by chance if the null hypothesis H0: β1 = 0 is true, so the p-value is tiny (less than 0.0001). In plain language, the t-statistic tells us that the incremental production time is not zero. That’s not a surprise; even an automated manufacturing process takes some time to produce a custom product.
A typical reaction to these tests of the intercept and slope is to wonder why software automatically ...
Get Statistics for Business: Decision Making and Analysis, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.