The t test shows the ratio of an estimated coefficient to its standard error.

Question

Quizplus · Accepted Answer

This is a correct statement about the t test. The t test is used to determine whether the estimated coefficient in a regression model is significantly different from zero. It does this by dividing the estimated coefficient by its standard error, producing a t-value. If the absolute value of the t-value is greater than a certain threshold (based on the desired level of significance and the degrees of freedom), then it is concluded that the coefficient is significantly different from zero.

The T Test Shows the Ratio of an Estimated Coefficient