Understanding the relationship between two variables often involves analyzing the slope of the population's regression line, denoted as β. The slope β indicates the strength and direction of a linear correlation between variables. To determine if an observed linear trend in sample data is statistically significant and can be generalized to the population, a hypothesis test for β is conducted.
In this context, the null hypothesis (H0) always states that there is no linear correlation between the variables, meaning the population slope β = 0. The alternative hypothesis (Ha) depends on the research question: it can be two-sided (β ≠ 0) if testing for any linear relationship, or one-sided (β > 0 or β < 0) if testing for a positive or negative correlation specifically.
For example, consider an economic study examining the relationship between advertising spending and product sales (measured in thousands of dollars). To test the claim that no linear relationship exists at a significance level of α = 0.05, the hypotheses are set as:
H0: β = 0
Ha: β ≠ 0
Using statistical software or a graphing calculator such as the TI-84, the data for advertising spending and sales are inputted into separate lists. The LinRegTTest function performs the hypothesis test for the slope β. This test calculates a t-statistic and corresponding p-value to assess the evidence against the null hypothesis.
When the p-value is less than the significance level α, the null hypothesis is rejected, indicating sufficient evidence that the population slope β is not zero. This implies a statistically significant linear correlation between the variables. For instance, a p-value of approximately 3.4 × 10−6 is much smaller than 0.05, leading to rejection of H0 and supporting the conclusion that advertising spending and product sales are linearly related.
This hypothesis testing approach for the regression slope is essential in inferential statistics, allowing researchers to extend findings from sample data to broader populations. It complements correlation coefficient tests and provides a rigorous method to confirm whether observed trends reflect true relationships or random chance.
