Question: You estimate the model Y=β₀ + β₁ X₁ +ε using a sample of more than 1000 observations.

You get the following results: Estimate of β₁ = 4.5. Standard error of β₁ = 2.2.

Based on the above, please calculate the following:

a) The t-statistic.

b) The 95% confidence interval.

c) The 99% confidence interval.

d) State the range within which the p-value will lie (you can’t calculate the exact p-value from the above information, but you should be able to tell me the upper and lower limits of the range).

Are you able to reject the null hypothesis that β₁ is =0 ? At what level of confidence?