The critical value of t is the value that a t-statistic must exceed in order to
A)reject the hypothesis that the true value of a parameter equals zero.
B)accept the hypothesis that the estimated value of parameter equals the true value.
C)reject the hypothesis that the estimated value of the parameter equals the true value.
D)reject the hypothesis that the estimated value of the parameter exceeds the true value.

Question

Quizplus · Accepted Answer

The critical value of t is used in hypothesis testing to determine whether to reject the null hypothesis, which states that the true value of a parameter equals zero. If the calculated t-statistic exceeds the critical value of t, then the null hypothesis can be rejected and it can be concluded that the true value of the parameter is not zero. Therefore, choice A is the correct answer.

The Critical Value of T Is the Value That a T-Statistic