Hypothesis testing in multiple regression models involves evaluating whether one or more of the predictor variables have a statistically significant effect on the dependent variable.
This process includes testing both the overall significance of the model and the significance of individual predictors.
Steps for Hypothesis Testing in Multiple Regression Models
1. Formulate the Hypotheses:
2. Estimate the Regression Model:
3. Overall Model Significance Test (F-Test):
4. Individual Predictor Significance Test (t-Test):
5. Make Decisions:
Example
Testing if study hours (X1) and tutoring hours (X2) affect exam scores (Y):
1. Hypotheses
2. Estimate Model:
3. F- test
Calculate F-statistic (e.g., 15), p-value = 0.001.