An estimated regression coefficient is 10 with a standard error of 5.The null hypothesis is that the partial regression coefficient equals one.What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?
A)1
B)2
C)1.8
D)0.5

Question

Quizplus · Accepted Answer

The t-statistic can be calculated as (estimated coefficient - hypothesized value of the coefficient) / standard error of the estimated coefficient. 
In this case, the estimated coefficient is 10 and the hypothesized value is 1, so the numerator of the t-statistic is 9. 
Dividing 9 by 5 (the standard error) gives a t-statistic of 1.8.

An Estimated Regression Coefficient Is 10 with a Standard Error