If the error variable ε is normally distributed,the test statistic for testing H₀: β₁ = 0 has a Student t-distribution with n − 2 degrees of freedom.

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The statement is true. The test statistic for testing H₀: β₁ = 0 using the t-test has a t-distribution with n-2 degrees of freedom, assuming that the error variable ε is normally distributed.

If the Error Variable ε Is Normally Distributed,the Test Statistic