parameter estimate is said to be statistically significant if there is sufficient evidence that the
A)sample regression equals the population regression.
B)parameter estimated from the sample equals the true value of the parameter.
C)value of the t-ratio equals the critical value.
D)true value of the parameter does not equal zero.

Question

Quizplus · Accepted Answer

A parameter estimate is said to be statistically significant if the true value of the parameter does not equal zero. This is because a null hypothesis test is conducted to determine whether the parameter is significantly different from zero. If the test yields a p-value that is lower than the significance level (usually 0.05), then there is sufficient evidence to reject the null hypothesis and conclude that the parameter is statistically significant. Therefore, option D is correct. The other options do not fully capture the concept of statistical significance.

Parameter Estimate Is Said to Be Statistically Significant If There