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Consider the following estimated regression equation, with standard errors of the coefficients as indicated:
Salesi = 10.0 + 1.25 R&Di + 1.0 ADVi – 2.0 COMPi + 8.0 CAPiThe equation was estimated over 40 companies. Using a 5% level of significance, what are the hypotheses and the calculated test statistic to test whether the slope on R&D is different from 1.0? A. H0: bR&D = 1 versus Ha: bR&D≠ 1; t = 0.556. B. H0: bR&D ≠ 1 versus Ha: bR&D = 1; t = 2.778. C. H0: bR&D = 1 versus Ha: bR&D≠1; t = 2.778. |