Suppose that you are interested in estimating the average impact a job training program has on wages. After controlling for observed factors that influence wages, participation in the training program, you find that the coefficient for the training is 0.55 and the standard error is 1.06. Thus, we can infer that the training program has a positive and statistically significant impact on wages at a 95% confidence level.

Question

Quizplus · Accepted Answer

Given the coefficient is 0.55 and the standard error is 1.06, to assess statistical significance at a 95% confidence level, typically a t-value of about 2 or more is considered significant. Here, the coefficient divided by the standard error (0.55 / 1.06) gives a value less than 1, indicating the result is not statistically significant at the 95% confidence level.

Suppose That You Are Interested in Estimating the Average Impact