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    T-statistic question



    So my teacher decided to throw us a bonus for extra homework points...I've taken a look at this, and could use a bit of help getting started.

    It's a proof problem, and I need to prove that the T-statistic for beta...best way for me to show you is to post an image. Any help is much appreciated, I understand you guys aren't in the business of giving straight answers, I could really just use as much help as possible here though! Thanks!
    http://img821.imageshack.us/img821/9980/070s.jpg

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    Quote Originally Posted by LBJ6 View Post
    So my teacher decided to throw us a bonus for extra homework points...I've taken a look at this, and could use a bit of help getting started.

    It's a proof problem, and I need to prove that the T-statistic for beta...best way for me to show you is to post an image. Any help is much appreciated, I understand you guys aren't in the business of giving straight answers, I could really just use as much help as possible here though! Thanks!
    http://img821.imageshack.us/img821/9980/070s.jpg
    It's not a proof problem. Rather, it is an algebraic relationship.

    Use this:

    b=r\frac{s_{y}}{s_{x}}.

    Note that the use of adjusted R^2 ...i.e. (N -2) is being used in the relationship.


    ----------

    Kink of like this:

    \frac{b}{\frac{s_{y\cdot x}}{s_{x}\sqrt{n-1}}} =

    = \frac{r\frac{s_{y}}{s_{x}}}
{\frac{s_{y}\sqrt{\left ( 1-r^{2} \right )\left ( \frac{n-1}{n-2} \right )}}{s_{x}\sqrt{n-1}}}

    = \frac{r\sqrt{n-2}}{\sqrt{1-r^{2}}}

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