Concluding Example

Let us return to Example 3.2 about food expenditure in India. Using the data given in (3.7.2) and adopting the format of (5.11.1), we obtain the following expenditure equation:

FoodExp, = 94.2087 + 0.4368 TotalExp, se = (50.8563) t = (1.8524) p = (0.0695) r2 = 0.3698; Fi,53 = 31.1034

were true, what is the probability of obtaining a value of 0.4368? Under the null hypothesis, we observe from (5.12.2) that the t value is 5.5770 and the p value of obtaining such a t value is practically zero. In other words, we can reject the null hypothesis resoundingly. But suppose the null hypothesis were that fS2 = 0.5. Now what? Using the t test we obtain:

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Rules Of The Rich And Wealthy

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