Consider a regression in which = - 1.5 and the standard error of this coefficient equals 0.3.To determine whether x₂ is a significant explanatory variable, you would compute an observed t-value of - 5.0.

Question

Consider a regression in which  = - 1.5 and the standard error of this coefficient equals 0.3.To determine whether x₂ is a significant explanatory variable, you would compute an observed t-value of - 5.0.

Quizplus · Accepted Answer

To determine the significance of x₂, we need to calculate its corresponding t-value and compare it to a critical t-value. The observed t-value of -5.0 indicates that x₂ is significant at a high level of confidence, as its value is much larger than the critical t-value for the given standard error of the coefficient. Therefore, the answer is A. The observed t-value of -5.0 means that the coefficient for x₂ is more than 5 standard errors away from zero, which indicates that it is highly likely to be a statistically significant explanatory variable. This conclusion is further supported by the fact that the coefficient for 11ebc114_12b1_c9f1_8acb_efcf59ae11a8_TB8562_11 is also statistically significant (given its low p-value), suggesting that the overall regression model has some predictive power.

Consider a Regression in Which = - 1