We run a linear regression model, Y equals beta subscript 0 plus beta subscript
ID: 2908416 • Letter: W
Question
We run a linear regression model, Y equals beta subscript 0 plus beta subscript 1 X subscript 1 plus beta subscript 2 X subscript 2 plus beta subscript 3 X subscript 3 plus mu and obtain the following result, parameter estimate standard error beta subscript 0 0.086 0.034 beta subscript 1 0.016 0.007 beta subscript 2 0.219 0.022 beta subscript 3 -0.403 0.018 is beta subscript 1 differ significantly from zero at 5% significance level? Is beta subscript 2 differ significantly from zero at 5% significance level? A. YES, YES B. YES, NO C. NO, YES D. NO, NO
Explanation / Answer
(here sample size is not give ; kndly revert if sample size information is given if it is less than 9 then answer should be C ; otherwise A)
here test statistic for beta 1 =coefficient/std error =0.016/0.007=2.286
test statistic for beta 2 =coefficient/std error =0.219/0.022=9.95
as both the test statistic are signiificant
option A is correct
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