# Quick Practice Drills — English ## t-Tests, Confidence Intervals, Hypothesis Testing --- ## Drill 1: Simple t-Test **Given:** - Sample size: n = 38 - Estimated coefficient: β̂ = 2.4 - Standard error: SE = 0.9 **Test:** H₀: β = 0 vs H₁: β ≠ 0 at α = 0.05 **Your tasks:** 1. Calculate the t-statistic 2. Find degrees of freedom 3. Find critical value (two-tailed, α = 0.05) 4. Make your decision: Reject or fail to reject H₀? 5. Calculate the p-value range using t-table
Answers 1. t = (2.4 - 0) / 0.9 = 2.667 2. df = 38 - 2 = 36 (simple regression) 3. Critical value ≈ 2.028 (or use 2.042 for df=30, 2.021 for df=40) 4. |2.667| > 2.028 → **Reject H₀** 5. From t-table: 2.434 < 2.667 < 2.750 → **0.01 < p < 0.02**
--- ## Drill 2: One-Tailed Test **Given:** - n = 55 - β̂ = -1.8, SE = 0.7 **Test:** H₀: β ≥ 0 vs H₁: β < 0 at α = 0.01 **Your tasks:** 1. Calculate t-statistic 2. Find critical value (one-tailed, α = 0.01) 3. Decision?
Answers 1. t = (-1.8 - 0) / 0.7 = -2.571 → |t| = 2.571 2. df = 53, one-tailed critical at α=0.01: ≈ 2.404 3. 2.571 > 2.404 → **Reject H₀** (evidence that β < 0)
--- ## Drill 3: 95% Confidence Interval **Given:** - n = 42 - β̂ = 3.6, SE = 1.2 **Your tasks:** 1. Construct 95% confidence interval 2. Interpret the interval 3. Does this interval contain 2.0? What does that tell you?
Answers 1. df = 40, t₀.₀₂₅ = 2.021 Margin = 2.021 × 1.2 = 2.425 CI: [3.6 - 2.425, 3.6 + 2.425] = **[1.175, 4.025]** 2. We are 95% confident the true β lies between 1.175 and 4.025 3. Yes, 2.0 is in the interval → We **cannot reject** H₀: β = 2.0 at α=0.05
--- ## Drill 4: Multiple Regression Test **Regression output:** | Variable | Coefficient | Std. Error | |----------|-------------|------------| | Intercept | 5.2 | 2.1 | | X₁ | **1.5** | **0.4** | | X₂ | -0.8 | 0.6 | | X₃ | 2.1 | 0.9 | n = 65 **Your tasks:** 1. Test each slope coefficient at α = 0.05 2. Which variables are significant? 3. Construct 90% CI for X₁
Answers 1. df = 65 - 3 - 1 = 61, critical value ≈ 1.96 (or 2.000 for df=60) - X₁: t = 1.5/0.4 = 3.75 → **Significant** ✓ - X₂: t = -0.8/0.6 = -1.33 → |1.33| < 2.0 → **Not significant** ✗ - X₃: t = 2.1/0.9 = 2.33 → **Significant** ✓ 2. X₁ and X₃ are significant at 5% level 3. 90% CI for X₁: t₀.₀₅,₆₁ ≈ 1.671 Margin = 1.671 × 0.4 = 0.668 CI: [1.5 - 0.668, 1.5 + 0.668] = **[0.832, 2.168]**
--- ## Drill 5: CI for Hypothesis Test **Given:** - 95% CI for β: [0.5, 3.2] **Test:** H₀: β = 4.0 vs H₁: β ≠ 4.0 at α = 0.05 **Your task:** Use the CI method to test this hypothesis.
Answer 4.0 lies **outside** the 95% CI [0.5, 3.2] → **Reject H₀** at α = 0.05 The hypothesized value 4.0 is not a plausible value for β.
--- ## Drill 6: Interpretation Check **Given:** β̂ = 2.3, p-value = 0.08 **Which statements are correct?** - [ ] The effect is not statistically significant at 5% level - [ ] There is an 8% probability that β = 0 - [ ] If H₀ were true, there's 8% chance of seeing this result - [ ] We are 92% confident there is an effect - [ ] At 10% level, the effect would be significant
Answers Correct: ✓✗✓✗✓ - ✓ Not significant at 5% (0.08 > 0.05) - ✗ P-value is NOT probability H₀ is true - ✓ Correct interpretation of p-value - ✗ Confidence and significance are different concepts - ✓ Would be significant at 10% (0.08 < 0.10)
--- ## Drill 7: Full Problem — Coffee Shop Prices **Scenario:** A researcher studies coffee shop prices in 28 cities. **Model:** Priceᵢ = β₀ + β₁Rentᵢ + β₂Wageᵢ + uᵢ **Output:** | Variable | Coefficient | Std. Error | |----------|-------------|------------| | Intercept | 1.50 | 0.80 | | Rent (€100/m²) | **0.25** | **0.08** | | Wage (€/hour) | 0.15 | 0.12 | **Questions:** 1. Test if rent affects price at 5% level 2. Test if wage affects price at 5% level 3. Construct 95% CI for rent coefficient 4. A politician claims each €100 rent increase raises price by €0.40. Test this claim.
Answers 1. Rent: t = 0.25/0.08 = 3.125, df = 25, critical ≈ 2.060 3.125 > 2.060 → **Significant** ✓ 2. Wage: t = 0.15/0.12 = 1.25, |1.25| < 2.060 → **Not significant** ✗ 3. 95% CI for rent: t₀.₀₂₅,₂₅ = 2.060 Margin = 2.060 × 0.08 = 0.165 CI: [0.25 - 0.165, 0.25 + 0.165] = **[0.085, 0.415]** 4. Politician claims β₁ = 0.40. Is 0.40 in the CI [0.085, 0.415]? Yes! (0.40 is inside the interval) → **Cannot reject** the politician's claim at 5% level.
--- ## Drill 8: Quick Calculations **Calculate mentally or with scratch paper:** | β̂ | SE | n | k | t-stat | Significant at 5%? | |----|----|---|---|--------|-------------------| | 4.0 | 1.5 | 30 | 1 | ? | ? | | -2.5 | 1.0 | 50 | 2 | ? | ? | | 0.8 | 0.3 | 100 | 3 | ? | ? | | 1.2 | 0.9 | 25 | 1 | ? | ? |
Answers | β̂ | SE | n | k | t-stat | df | critical | Significant? | |----|----|---|---|--------|-----|----------|--------------| | 4.0 | 1.5 | 30 | 1 | 2.67 | 28 | 2.048 | **Yes** | | -2.5 | 1.0 | 50 | 2 | 2.50 | 47 | 2.012 | **Yes** | | 0.8 | 0.3 | 100 | 3 | 2.67 | 96 | 1.985 | **Yes** | | 1.2 | 0.9 | 25 | 1 | 1.33 | 23 | 2.069 | **No** |
--- ## Formula Sheet **t-statistic:** $$t = \frac{\hat{\beta} - \beta_0}{SE(\hat{\beta})}$$ **Confidence Interval:** $$CI = \hat{\beta} \pm t_{\alpha/2, df} \times SE(\hat{\beta})$$ **Degrees of freedom:** - Simple regression: df = n - 2 - Multiple regression: df = n - k - 1 (where k = number of X variables) **Common critical values (two-tailed):** | df | α = 0.10 | α = 0.05 | α = 0.01 | |----|----------|----------|----------| | 25 | 1.708 | 2.060 | 2.787 | | 30 | 1.697 | 2.042 | 2.750 | | 40 | 1.684 | 2.021 | 2.704 | | 60 | 1.671 | 2.000 | 2.660 | | 120 | 1.658 | 1.980 | 2.617 | | ∞ | 1.645 | 1.960 | 2.576 | --- *Practice these until you can do them in your sleep! 🎯*