In chapter 13 (correlation and regression), are test for alpha and finding confidence interval for alpha included in the syllabus? I am getting to some questions in past papers of IAI refer the same. Eg: question 17 (e) of Nov 2008 aks to find the same. I am posting the picture of the confidence interval formula they used in their solution. Can anyone post the test statistic formula to test for alpha? It will be of great help. Thanks in advance! please ref. to the pics attached for details.
Alpha is the y-intercept. So it is the y value when x is zero. Therefore you use the pivotal quantity for the y value with x=0.