Consider the following regression output where the dependent variable is testscores and the two explanatory variables are the student-teacher ratio and the percent of English learners: $\widehat{\text { TestScore }}$ = 698.9 - 1.10×STR - 0.650×PctEL. You are told that the t-statistic on the student-teacher ratio coefficient is 2.56. The standard error therefore is approximately
A)0.25
B)1.96
C)0.650
D)0.43

Question

Quizplus · Accepted Answer

We can use the formula for t-statistic to calculate the standard error as:
t-statistic = (coefficient estimate - null hypothesis value) / standard error
2.56 = (-1.10 - 0) / standard error
standard error = (-1.10) / 2.56 = -0.4297
Taking the absolute value, we get the standard error as approximately 0.43. Thus, the answer is D.

Consider the Following Regression Output Where the Dependent Variable Is TestScore ^\widehat{\text { TestScore }} TestScore

Consider the Following Regression Output Where the Dependent Variable Is $\widehat{\text { TestScore }}$