## coefficient interpretation

Econometrics questions and discussions

### coefficient interpretation

Dear Tom,

I am some how confused about the below results.
I would be grateful if you could possibly guide me.

How it is possible that:
a) the null of beta=0 cannot be rejected and meanwhile the null of beta=1 also cannot be rejected?

And what about the the joint hypothesis of Alpha=0 and Beta=1? (it cannot be rejected).

`Linear Regression - Estimation by Least SquaresWith Heteroscedasticity-Consistent (Eicker-White) Standard ErrorsDependent Variable DEPUsable Observations                        53Degrees of Freedom                         51Centered R^2                        0.0200152R-Bar^2                             0.0007998Uncentered R^2                      0.1113663Mean of Dependent Variable       0.0371020898Std Error of Dependent Variable  0.1168258428Standard Error of Estimate       0.1167791170Sum of Squared Residuals         0.6955054710Log Likelihood                        39.6316Durbin-Watson Statistic                2.2798    Variable                        Coeff      Std Error      T-Stat      Signif************************************************************************************1.  Constant                     0.0169966283 0.0214227068      0.79339  0.427548812.  INDEP                        0.6303479148 0.9810692176      0.64251  0.52054135Test for indep(Beta)=1Chi-Squared(1)=      0.141967 with Significance Level 0.70633345Test for constant(Alpha)=0 & indep(Beta)=1Chi-Squared(2)=      1.137291 or F(2,*)=      0.56865 with Significance Level 0.56629188`
jack

Posts: 125
Joined: Tue Sep 27, 2016 11:44 am

### Re: coefficient interpretation

Your interpretation is correct; you cannot reject either 0 or 1. Obviously the data don't have very strong information about the value of beta.
TomDoan

Posts: 7240
Joined: Wed Nov 01, 2006 5:36 pm 