Consider the following regression output where the dependent variable is testscores and the two explanatory variables are the student-teacher ratio and the percent of English learners: = 698.9 - 1.10×STR - 0.650×PctEL.You are told that the t-statistic on the student-teacher ratio coefficient is 2.56.The standard error therefore is approximately
A)0.25
B)1.96
C)0.650
D)0.43

Question

Consider the following regression output where the dependent variable is testscores and the two explanatory variables are the student-teacher ratio and the percent of English learners:  = 698.9 - 1.10×STR - 0.650×PctEL.You are told that the t-statistic on the student-teacher ratio coefficient is 2.56.The standard error therefore is approximately
A)0.25 
B)1.96 
C)0.650 
D)0.43

Quizplus · Accepted Answer

The formula for the t-statistic is t = (coefficient estimate - hypothesized value) / standard error.
Given that the t-statistic for the student-teacher ratio coefficient is 2.56 and we want to find the standard error, we can rearrange the formula to solve for the standard error:
standard error = (coefficient estimate - hypothesized value) / t-statistic
We can substitute the given coefficient estimate and t-statistic to get:
standard error = (1.10) / 2.56 = 0.4297
Rounding to two decimal places, we get a standard error of approximately 0.43. Therefore, the best choice is D.

Consider the Following Regression Output Where the Dependent Variable Is