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7 Hypothesis Tests and Confidence Intervals in Multiple Regression

This chapter discusses methods that allow to quantify the sampling uncertainty in the OLS estimator of the coefficients in multiple regression models. The basis for this are hypothesis tests and confidence intervals which, just as for the simple linear regression model, can be computed using basic R functions. We will also tackle the issue of testing joint hypotheses on these coefficients.

Make sure the packages AER (Kleiber & Zeileis, 2017) and stargazer (Hlavac, 2018) are installed before you go ahead and replicate the examples. The safest way to do so is by checking whether the following code chunk executes without any issues.



Kleiber, C., & Zeileis, A. (2017). AER: Applied Econometrics with R (Version 1.2-5). Retrieved from

Hlavac, M. (2018). stargazer: Well-Formatted Regression and Summary Statistics Tables (Version 5.2.2). Retrieved from