A researcher studies the relationship between SAT scores, the test-taker's family income, and his or her grade point average (GPA). Data are collected from 24 students. He estimates the following model: SAT = β₀ + β₁ GPA + β₂ Income + ε. The following table summarizes a portion of the regression results. At the 5% significance level, which of the following explanatory variable(s) is(are) individually significant? A) Only Income. B) Both, GPA and Income. C) Only GPA. D) Neither GPA nor Income.

Question

Quizplus · Accepted Answer

The p-value for Income is less than 0.05 (0.026), indicating that it is individually significant at the 5% significance level. Both GPA and SAT have p-values greater than 0.05, indicating that they are not individually significant at the 5% significance level.

A Researcher Studies the Relationship Between SAT Scores, the Test-Taker's