The t-statistic is used to measure
the confidence one can place in the estimated regression parameter. The statistic measures the number of
standard errors between an estimated regression parameter and a hypothesized
value for the true parameter. Stated
differently, the t-statistic is the ratio of the difference between the
estimated regression coefficient and the hypothesized value to the associated
standard error.
The hypothesized parameter estimate in ORS
is zero. The null hypothesis states
that the estimated regression parameter is equal to the true hypothesized
value; that is, it is equal to zero or has no influence on the dependent
variable.
Ho:
b =
0.0