The manager can be 95 percent confident that the true value of the underlying parameters in a regression is not zero if the absolute value of the t-statistic is:
A) less than 1.
B) less than 2.
C) greater than 1.
D) greater than 2.

Question

Quizplus · Accepted Answer

The absolute value of the t-statistic must be greater than 2 to be 95 percent confident that the true value of the underlying parameters in a regression is not zero, as this corresponds to a p-value of 0.05 or less. A t-statistic with an absolute value between 1 and 2 indicates that the results are not statistically significant, and a t-statistic with an absolute value less than 1 suggests that there is insufficient evidence to reject the null hypothesis that the parameter is zero.

The Manager Can Be 95 Percent Confident That the True