(b) To test whether or not the slope coefficient is statistically different from one
Let B = true parameter; b = estimator of true parameter
H0: B2 = 1
H1: B2 ≠1
t = ( B - b ) / Se( b ) = ( 1.651 - 1 ) / 0.025 = 26.04
Conclusion: Since the
the computed t is much greater than 2. Therefore, reject H0.