Exhibit 13-11
Below you are given a partial computer output based on a sample of 25 observations.
$\begin{array}{lcc}&\text { Coefficient }&\text { Standard Error }\
\text { Constant } & 145 & 29 \
\mathrm{X}_{1} & 20 & 5 \
\mathrm{X}_{2} & -18 & 6 \
\mathrm{X}_{3} & 4 & 4
\end{array}$
-Refer to Exhibit 13-11. We want to test whether the parameter ?2 is significant. The test statistic equals
A) 4
B) 5
C) 3
D) -3

Question

Exhibit 13-11
Below you are given a partial computer output based on a sample of 25 observations.
 $\begin{array}{lcc}&\text { Coefficient }&\text { Standard Error }\
\text { Constant } & 145 & 29 \
\mathrm{X}_{1} & 20 & 5 \
\mathrm{X}_{2} & -18 & 6 \
\mathrm{X}_{3} & 4 & 4
\end{array}$
-Refer to Exhibit 13-11. We want to test whether the parameter ?2 is significant. The test statistic equals
A) 4
B) 5
C) 3
D) -3

Quizplus · Accepted Answer

The test statistic for a parameter is calculated as the coefficient divided by its standard error. For $X_2$, it is $-18 / 6 = -3$.

Exhibit 13-11 Below You Are Given a Partial Computer Output

Exhibit 13-11
Below You Are Given a Partial Computer Output