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You believe that variable X directly (positively) affects the value of variable

ID: 3065857 • Letter: Y

Question

You believe that variable X directly (positively) affects the value of variable Y. After running a regression, the parameter estimate of X is +0.49 and the 1-statistic is 0.03. You would thus conclude that Select one: a. The parameter has the expected sign but is statistically insignificant, therefore you cannot rule out the possibility that X has no discernible effect on Y O b. Since the t-statistic is less than the parameter value, the relationship between X and Y is actually negative or inversely related. O c. The parameter has the correct sign and is statistically significant. d. While statistically significant, the parameter has an unexpected sign. The X O discarded from the regression model and re-run

Explanation / Answer

ere as test statistic is inisignfiicant therefore we cna not reject null hypothesis.

hence option A seems to be correct

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