Exhibit 13-9 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. -Refer to Exhibit 13-9. The coefficient of X₃ 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 coefficient of X₃ is not significant because its t-value (coefficient divided by its standard error) is less than 1.96 (the critical value for a 95% confidence interval). Additionally, the p-value (probability of obtaining a value as extreme as the sample estimate under the assumption that the null hypothesis is true) is greater than 0.05 (the usual cutoff for statistical significance). Therefore, we fail to reject the null hypothesis that X₃ has no effect on Y.

Exhibit 13-9 In a Regression Analysis Involving 25 Observations, the Following Estimated