54807012
A slope test uses an estimated slope of \(1.50\) dollars per hour and a slope standard error of \(0.60\) dollars per hour. A student reports the test statistic as “\(t=2.50\) dollars per hour.”
Correct the report and explain the units.
Hints
- Write the test statistic as a ratio.
- Track the units in the numerator and denominator.
- Quantities with identical units cancel when divided.
Solution
1. For testing \(H_0: \beta=0\), the test statistic is \(t=\frac{1.50-0}{0.60}=2.50\).
2. The numerator and denominator have the same slope units, dollars per hour.
3. Those units cancel in the ratio, so the \(t\) statistic is unitless.
Answer
The correct report is \(t=2.50\), with no units. The slope units cancel when the slope difference is divided by its standard error.
