The statistic that tests an individual coefficient for statistical significance is the:
A) R-squared statistic.
B) t-statistic.
C) Durbin-Watson statistic.
D) F-test statistic.
E) standard error of the estimate.

Question

Quizplus · Accepted Answer

The t-statistic is used to test the statistical significance of individual coefficients in a regression model. It measures how far the estimated coefficient is from zero in terms of standard errors, and compares it to a t-distribution to calculate a p-value. A lower p-value indicates stronger evidence against the null hypothesis (i.e. the coefficient is equal to zero) and in favor of statistical significance.

The Statistic That Tests an Individual Coefficient for Statistical Significance