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    Hello,

    I'm desperate here, people. I really, really need help on this assignment. If you have free time and could assist me, I would be forever grateful. Thank you so much
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    Some good karma will come your way ))).
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    Perhaps you could specify what you need help with (as opposed to just posting the whole exercise)
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    I'm unsure about 1 and 3. I missed that day of class so I'm quite confused. Any help would be appreciated.
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    H_0: roe=0 \, , \,\, H_1: roe>0 \,or \,roe<0

    Now can you write the test statistic down (hint t-statistic).
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    Ok I got that part. Thanks. I just don't know where to go next
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    (Original post by though92)
    Ok I got that part. Thanks. I just don't know where to go next
    You got the t-statistic? Then you just calculate it and look at the table.
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    I don't know what values to put in th equation. Could you give me a guide? I'm confused but I really appreciate your assistance.
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    No offence, but if you don't know what "numbers" to put into the equation, you have much bigger problems than this problem set.

    I suggest you talk to the lecturer or a TA or a mate and ask them to explain it to you.

    You plug in the coefficient value take away the value under the null, 0 here, and divide by the standard error. That's the t-statistic. The value from the table for a 2-sided alternative of 1% means you need 0.5% at either tail.
 
 
 
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