Steps Needed to Estimate a p-value for B2= -0.4
- Click on the radio box containing “Enter mean, SEM and N.” Mean is the parameter value we estimated, SEM is the standard error, and N is the number of observations.
- Enter -0.31 in the box labelled “Mean:”.
- Enter 0.03 in the box labelled “SEM:”
- Enter 219 in the box labelled “N:”, as this is the number of observations we had.
- Under “3. Specify the hypothetical mean value” click on the radio button beside the blank box. In that box enter -0.4, as that is our hypothesis.
- Click “Calculate Now”
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P value and statistical significance:
The two-tailed P value equals 0.0030
By conventional criteria, this difference is considered to be statistically significant.
We used U.S. data to estimate the Okun's Law model. Using that data we found that both the intercept and slope parameters are statistically significantly different than those in Okun's Law. Therefore we can conclude that in the United States Okun's Law does not hold.
Now you've seen how to calculate and use one-sample t-tests, you will be able to interpret the numbers you've calculated in your regression.
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