The t-statistic for the individual significance of the estimated slope coefficient$\hat { \beta } _ { 1 }$Is A)the standard error of the estimated slope coefficient. B)the estimated slope coefficient. C)the ratio of the estimated slope coefficient to the standard error of the estimated slope coefficient. D)the ratio of the estimated slope coefficient to the variance of the estimated slope coefficient.

Question

Quizplus · Accepted Answer

The t-statistic for the individual significance of the estimated slope coefficient is defined as the ratio of the estimated slope coefficient to the standard error of the estimated slope coefficient. This t-statistic is used to test the null hypothesis that the true slope coefficient is equal to zero. A larger t-value suggests stronger evidence against the null hypothesis and in favor of a non-zero slope coefficient. Therefore, the correct answer is C.

The t-Statistic for the Individual Significance of the Estimated Slope β^1\hat { \beta } _ { 1 }β^​1​

The t-Statistic for the Individual Significance of the Estimated Slope $\hat { \beta } _ { 1 }$