As a general rule-of-thumb, a manager can be 95 percent confident that the true value of the underlying parameter in the regression is not zero, when the absolute value of the t-statistic is
A)greater than zero.
B)greater than or equal to one.
C)greater than or equal to two.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Generally, in regression analysis, a t-statistic of 2 or higher is considered significant at the 95% confidence level. So, when the absolute value of the t-statistic is greater than or equal to two, the manager can be 95% confident that the true value of the underlying parameter is not zero.

As a General Rule-Of-Thumb, a Manager Can Be 95 Percent