TABLE 14-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units (credits)and total SAT scores of each.She takes a sample of students and generates the following Microsoft Excel output:
-True or False: Referring to Table 14-7,the department head wants to use a t test to test for the significance of the coefficient of X₁.At a level of significance of 0.05,the department head would decide that β₁ ≠ 0.

Question

TABLE 14-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units (credits)and total SAT scores of each.She takes a sample of students and generates the following Microsoft Excel output:

-True or False: Referring to Table 14-7,the department head wants to use a t test to test for the significance of the coefficient of X₁.At a level of significance of 0.05,the department head would decide that β₁ ≠ 0.

Quizplus · Accepted Answer

In Table 14-7, the t-value for the coefficient of X₁ is shown under "t Stat". The department head can use this t-value to test for the significance of the coefficient using a t test. At a level of significance of 0.05, if the calculated t-value is greater than the critical t-value, the department head would reject the null hypothesis and decide that β₁ ≠ 0. Therefore, the statement in the question is true.

TABLE 14-7 The Department Head of the Accounting Department Wanted to See