The hypothesis test of cost parameters
A) is not tested by the t-statistic.
B) indicates whether the parameters are different from zero.
C) tells the t-value of the significance achieved.
D) all of the above.

Question

Quizplus · Accepted Answer

The hypothesis test of cost parameters determines whether the parameters are different from zero, indicating if the cost is significant or not. The t-statistic may be used as part of this test, but it is not the focus of the test. The t-value of the significance achieved is not the main result of the test, but it may be used to make decisions about rejecting or accepting the null hypothesis.

The Hypothesis Test of Cost Parameters