Slope t statistic after doubling all data values
Question
A simple regression gives a statistic for the two-sided test of . You multiply both coordinates of every point by , refit, and get for the same test on the new slope. What is ? Enter if undetermined.
Short answer
. The slope is unchanged by scaling both axes equally. The residuals double, so the residual standard error doubles, while also doubles; the slope's standard error is therefore unchanged and so is .
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Open the worked solutionLessons behind this question
- Simple Linear Regression: OLS Estimators and Geometry
- Multiple Linear Regression
- The Hypothesis Testing Framework
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