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Jay Zha
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Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios that you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

EDIT

To answer the question in the comment: I think your understanding of the book is a bit off. The book is correct, but your understanding below is off the right track. What the book arrives is that $\hat{\beta}_1$ is of a normal distribution with mean equals to a constant $\beta_1$. And based on this, now it tries to have a test with hypothesis $\beta_1 = 0$ - this test is only about the r.v. $\hat{\beta}_1$, but is not about the regression model. And for the test you could plug in the null hypothesis early (as the book), or you could do it later - it does not matter.

$$\hat{\beta}_1 \sim N\left(\beta_1, \frac{\sigma^2}{s_{XX}}\right)$$ $$\frac{\hat{\beta}_1-\beta_1}{\sqrt{\frac{\sigma^2}{s_{XX}}}} \sim N\left(0,1\right)$$

All the transformation I did above is just to re-organize the random variable to make it more convenient to do the test, but if you do not change it, you could still do it.

Then you could construct either t-test or F-test based upon this normal distribution of $N(0,1)$, and you'll notice the test statistics you construct will contain a parameter of $\beta_1$. Now you could do the null test for $\beta_1=0$ by just plugging in the value of $\beta_1$, which is $0$, and compare value you get v.s. the critical value given certain significance level.

But notice all the above is just for a hypothesis test to a random variable, we plugged in $\beta_1=0$ because this is what we want to test. But all the test is not gonna change our linear regression model, and it is a separate hypothesis test for a random variable we derived from the regression model.

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios that you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios that you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

EDIT

To answer the question in the comment: I think your understanding of the book is a bit off. The book is correct, but your understanding below is off the right track. What the book arrives is that $\hat{\beta}_1$ is of a normal distribution with mean equals to a constant $\beta_1$. And based on this, now it tries to have a test with hypothesis $\beta_1 = 0$ - this test is only about the r.v. $\hat{\beta}_1$, but is not about the regression model. And for the test you could plug in the null hypothesis early (as the book), or you could do it later - it does not matter.

$$\hat{\beta}_1 \sim N\left(\beta_1, \frac{\sigma^2}{s_{XX}}\right)$$ $$\frac{\hat{\beta}_1-\beta_1}{\sqrt{\frac{\sigma^2}{s_{XX}}}} \sim N\left(0,1\right)$$

All the transformation I did above is just to re-organize the random variable to make it more convenient to do the test, but if you do not change it, you could still do it.

Then you could construct either t-test or F-test based upon this normal distribution of $N(0,1)$, and you'll notice the test statistics you construct will contain a parameter of $\beta_1$. Now you could do the null test for $\beta_1=0$ by just plugging in the value of $\beta_1$, which is $0$, and compare value you get v.s. the critical value given certain significance level.

But notice all the above is just for a hypothesis test to a random variable, we plugged in $\beta_1=0$ because this is what we want to test. But all the test is not gonna change our linear regression model, and it is a separate hypothesis test for a random variable we derived from the regression model.

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Jay Zha
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  • 36

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios atthat you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios at you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios that you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

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Jay Zha
  • 7.8k
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Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at orall - your current model and all statistics does not change, and it readily incorporates the scenarios at you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at or - your current model and all statistics does not change, and it readily incorporates the scenarios at you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

Notice that whether or not your null hypothesis is accepted or rejected, is not affecting your model at all - your current model and all statistics does not change, and it readily incorporates the scenarios at you null hypothesis could not be rejected, but it's just "how likely" it's gonna happen. Even if we could not reject null hypothesis, it does not mean your coefficients are now definitely $0$, but it just mean it has a really low probability to be $0$ and thus is statistically significant.

Source Link
Jay Zha
  • 7.8k
  • 1
  • 26
  • 36
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