Suppose you are testing the statistical significance (at the 5% significance level) of a parameter estimate from the regression equation: Y = a + bR + cS + dW
Which is estimated using a time-series sample containing monthly observations over a 30-month time period.The critical value of the appropriate test statistic is

Question

Quizplus · Accepted Answer

Since we are testing the significance of a single parameter estimate, we will use a t-test. With a sample size of 30 and a significance level of 5%, the critical value for a two-tailed test is t-critical = 2.042. Therefore, the answer is choice B as it is the closest option to the critical value of 2.042.

Suppose You Are Testing the Statistical Significance (At the 5