The greater the standard error of an estimated coefficient:
A) the greater the t-value of the estimated coefficient.
B) the lower the t-value of the estimated coefficient.
C) the greater the R-square.
D) the greater the adjusted R-square.

Question

Quizplus · Accepted Answer

The standard error of an estimated coefficient is the standard deviation of the sampling distribution of that coefficient. A higher standard error indicates greater variability in the data and more uncertainty in the estimate. As a result, the t-value, which is a measure of the magnitude of the estimated coefficient relative to its standard error, will be lower when the standard error is higher. Therefore, choice B) is the correct answer. The R-square and adjusted R-square are not directly affected by changes in the standard error.

The Greater the Standard Error of an Estimated Coefficient