Exhibit 16-1 In a regression analysis involving 25 observations, the following estimated regression equation was developed. Also, the following standard errors and the sum of squares were obtained. S b1 = 3 S b2 = 6 S b3 = 7 SST = 4,800 SSE = 1,296 -Refer to Exhibit 16-1. The coefficient of X₃ A)is significant B)is not significant C)can not be tested, because not enough information is provided D)None of these alternatives is correct.

Question

Quizplus · Accepted Answer

To determine if the coefficient of X₃ is significant, we need to calculate its t-statistic and compare it to the critical t-value at the desired level of significance (usually 0.05). However, the standard error for X₃ is not given, so we cannot calculate its t-statistic. Therefore, we cannot determine if the coefficient is significant or not, and the correct answer is B.

Exhibit 16-1 In a Regression Analysis Involving 25 Observations, the Following Estimated