S
StevieG4captain
Member
This doesn't seem to make sense.
The question states "Carry out a test based on the linear regression model to determine whether the underlying rate of increase in AIDS cases exceeds 500 per quarter" but the unit of the x-values is in years not quarters. (see page 7)
I'm not convinced that beta should be set to 0.5 in the null hypothesis, if a quarterly rate of increase of 500 is being tested then surely beta should be 2 (i.e. an increase of 2000 per year which is the same as 500 per quarter).
Otherwise, I would have thought that the x -values should be set to 4 x the year then everything is being treated as quarters, not a mixture of years and quarters.
If anyone could shed some light on why beta = 0.5 in the null hypothesis I'd be very grateful.
Thanks
The question states "Carry out a test based on the linear regression model to determine whether the underlying rate of increase in AIDS cases exceeds 500 per quarter" but the unit of the x-values is in years not quarters. (see page 7)
I'm not convinced that beta should be set to 0.5 in the null hypothesis, if a quarterly rate of increase of 500 is being tested then surely beta should be 2 (i.e. an increase of 2000 per year which is the same as 500 per quarter).
Otherwise, I would have thought that the x -values should be set to 4 x the year then everything is being treated as quarters, not a mixture of years and quarters.
If anyone could shed some light on why beta = 0.5 in the null hypothesis I'd be very grateful.
Thanks