A regression of W = a + bX,where W is wages and X is hours worked per week,yielded a t-statistic of 0.75 for b.Statistically speaking,this result suggests that
A) hours worked are probably positively related to wages.
B) hours worked are probably negatively related to wages.
C) we cannot reject the hypothesis that hours worked are unrelated to wages.
D) hours worked are probably related to wages in a minor way.

Question

Quizplus · Accepted Answer

A t-statistic of 0.75 is relatively small and indicates that the coefficient for hours worked (b) is not significantly different from zero. Therefore, we cannot reject the hypothesis that hours worked are unrelated to wages. It is important to note that this does not necessarily mean that there is no relationship between the two variables, but rather that the relationship is not statistically significant in this particular analysis.

A Regression of W = a + BX,where W Is