Exhibit 16-3
Below You Are Given a Partial Computer Output $\beta$

question 49

Multiple Choice

Exhibit 16-3
Below you are given a partial computer output based on a sample of 25 observations.
-Refer to Exhibit 16-3. We want to test whether the parameter $\beta$ ₂ is significant. The test statistic equals

• A)4
• B)5
• C)3
• D)-3

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Definitions:

Discretionary Income

Money remaining after the costs of basic necessities have been paid.

Basic Necessities

Essential items required for survival, including food, clothing, shelter, and clean water.

Lack of Education

A state or condition where an individual has not received sufficient formal learning or instruction.

Economic Necessity

A situation or condition where certain actions or decisions are compelled by financial need or constraints.