Consider a regression in which b₂ = - 1.5 and the standard error of this coefficient equals 0.3. To determine whether X₂ is a significant explanatory variable, you would compute an observed
t-value of - 5.0.

Question

Quizplus · Accepted Answer

To determine whether an explanatory variable is significant, we would look at the p-value or compare the observed t-value to the critical t-value at a certain level of significance. However, since the t-value in this scenario is given as -5.0 and the standard error is known, we can calculate the p-value and determine that X2 is a significant explanatory variable. Therefore, the statement is true.

Consider a Regression in Which B2 = - 1

Consider a Regression in Which B₂ = - 1