Which of the Following Is True of the T-Statistic

question 1

Multiple Choice

Which of the following is true of the t-statistic?

• A) It is the value of the coefficient estimate divided by its standard error.
• B) It is the sum of the value of the coefficient estimate and its standard error.
• C) It is the coefficient's standard error normalized to lie between 0 and 1.
• D) It measures the overall statistical validity of the regression equation.
• E) It tells us how many standard errors the coefficient estimate is equal to zero.

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Definitions:

Percent

A unit of proportion or ratio expressed as a fraction of 100, often used to quantify relative change or differences.

Inequality

The unequal distribution of resources, opportunities, and rights among people in a society, often leading to social and economic disparities.

Rich

Having a great deal of money, resources, or assets; wealth.

Poor Countries

Nations with low levels of socioeconomic development, characterized by low incomes, high poverty rates, and limited access to basics.