Q: \"Suppose that a researcher, using data on class size (CS) and average test s

Question

Q: "Suppose that a researcher, using data on class size (CS) and average test scores from 100 third-grade classes, estimates the OLS regression TestScore =525.6040 + ( - 5.8782) × CS, R2 = 0.10, SER= 11.6 with the standard errors for Beta0 = (20.6040) ; standard errors for Beta1 = (2.4089) The t-statistic for the two-sided test of the null hypothesis H0 : Beta1 = 0 is"

       -2.44

       3.43

       2.44

       -3.43

Q:What is the difference between u and uhat?

"uhat represents the deviation of observations from the population regression line, while u is the difference between Wage and its predicted value Wage."

"u represents the deviation of observations from the population regression line, while uhat is the OLS estimator of Wage"

"u represents the intercept of the population regression line, while uhat is the difference between Wage and its predicted value Wage."

“u represents the deviation of observations from the population regression line, while uhat is the difference between Wage and its predicted value Wage."

Q: "In a regression, if the t-statistic for a coefficient is 1.83, do you reject the null hypothesis of the coefficient being equal to zero at the 5% level?"

       I don't need the t-statistics to see if a coefficient is different from zero

       Depends also on what the p-value is

       No

       Yes

Q:"In a regression, if the confidence interval for a coefficient is (1.83, 2.76), do you reject the null hypothesis of the coefficient being equal to zero at the 5% level?"

       No

       "The confidence interval used to tell the overall fit of the regression, not something about one coefficient"

       Confidence intervals have to always be negative

       Yes

Explanation / Answer

Ans 1)

T -statistic value=Beta1-Null hypothesis value of Beta1/(Standard Error of Beta1)=(-5.8782-0)/2.4089=-2.4402

Option 1 is correct response

Ans 4)

Confiedance interval depicts the probability of 95% that estimate of given variable should lie in this bracket hence cant be said any thing about the rejecton of null hypothesis Hence answer is No

Option 3 is correct

Ans 3)

For 5% significance level and largersample if t value is higher than 2 then we cant rejectc the null hypothesis but in this cse it is 1.83<2

ANs is Yes

Ans 2)

u is population regression line error and u hat equals to wage -expected wage option C is correct

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