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Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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The null hypothesis for the F-distributed test statistic in a simple linear regression model tests whether the:

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Explanation:

In regression analysis, the F-distributed test statistic is used to test the null hypothesis that the slope of the regression line (denoted as bbb) is zero, against the alternative hypothesis that at least one slope is not zero. For a simple linear regression, this simplifies to:

  • Null Hypothesis (H₀): b=0b = 0b=0
  • Alternative Hypothesis (Hₐ): b≠0b \neq 0b=0

Option A is correct because it accurately reflects the null hypothesis being tested. Options B and C are incorrect as they misinterpret the focus of the F-test, which is on the slope, not the intercept, and the null hypothesis specifically tests for a zero slope.

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