Exhibit 16-1 In a regression analysis involving 25 observations, the following estimated regression equation was developed. Also, the following standard errors and the sum of squares were obtained. S b1 = 3 S b2 = 6 S b3 = 7 SST = 4,800 SSE = 1,296 -Refer to Exhibit 16-1. The coefficient of X₂ A)is significant B)is not significant C)can not be tested, because not enough information is provided D)None of these alternatives is correct.

Question

Quizplus · Accepted Answer

The significance of a coefficient is determined by dividing the coefficient by its standard error and comparing the result to the t-distribution with n-k-1 degrees of freedom, where n is the sample size and k is the number of independent variables in the model (including the intercept). Since no information is provided about X₂'s standard error or its t-value, it cannot be determined if it is significant or not. Therefore, option C is incorrect. Option D can be eliminated as it implies that the correct answer is not provided. Thus, the correct answer is B, as it acknowledges that no conclusion can be made about the significance of X₂.

Exhibit 16-1 In a Regression Analysis Involving 25 Observations, the Following Estimated