Hello all,
Can anyone help me figure out question nb 13 on Reading4 (Quant level II) pls?
Why the intercept and price_sales variable only are significant at 5% level? Is that because p-values are too small?
Thank you
I am not sure how to interpret the p-valey > |z| column as I don’t know the value od |z| used.
But if you look at the last two columns these give us the Z - value for 0.025 and 0.975. These are the upper and lower bounds with a signficance level of 5%
Then look at the z-statistic column. Intercept and Price sales are the only two with values outside the range. Mean we would reject the nill hypothesis that the value had not statistical significance.
Yes Absolutly. I missed to see the z-values. Thank you.