The hypothesis test of cost parameters
A) is not tested by the t-statistic.
B) indicates whether the parameters are different from zero.
C) tells the t-value of the significance achieved.
D) all of these.

Question

Quizplus · Accepted Answer

The hypothesis test of cost parameters involves determining whether the parameters are significantly different from zero. The t-statistic is commonly used to conduct this test, but the question specifically states that it is not the only method. Therefore, the correct answer is B, as it accurately describes what the hypothesis test is intended to accomplish. Choices A and C are both incorrect, as they do not fully capture the purpose and process of the hypothesis test of cost parameters.

The Hypothesis Test of Cost Parameters