Let B = true parameter; b = estimator of true parameter

     H₀: B₂ = 1

     H₁: B₂ ≠1

     t = ( B - b ) / Se( b ) = ( 1.3338 - 1 ) / 0.447 = 0.7468

　
     Critical value for t : t_0.05,13 = 2.16

     Conclusion: Since the critical t exceeds the computed t. Therefore, do not reject H_0, that
                         means the elasticity of substitution between labour and capital is 1.