If the T-Stat for the Sample Estimate of a Coefficient $\frac { m _ { 1 } - 1 } { S _ { m _ { 1 } } }$

question 7

Multiple Choice

If the t-stat for the sample estimate of a coefficient, M₁ calculated as the following, t = $\frac { m _ { 1 } - 1 } { S _ { m _ { 1 } } }$ , where m₁ is the estimated coefficient and S $m _ { 1 }$ is the properly estimated standard error for the coefficient, comes out to be 2.7, what is the appropriate conclusion?

• A) Reject the null hypothesis that the population coefficient M₁ = 1 at a 99% confidence level.
• B) Fail to reject the null hypothesis that the population coefficient M₁ = 1 at a 95% confidence level.
• C) Reject the null hypothesis that the population coefficient M₁ = 2 at a 99% confidence level.
• D) None of these choices are correct.

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