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For the Following Estimated Slope Coefficients and Their Heteroskedasticity Robust H0:β1=0H _ { 0 } : \beta _ { 1 } = 0

question 44

Essay

For the following estimated slope coefficients and their heteroskedasticity robust standard errors, find the t -statistics for the null hypothesis H0:β1=0H _ { 0 } : \beta _ { 1 } = 0 Assuming that your sample has more than 100 observations, indicate whether or not you are able to reject the null hypothesis at the 10 %, 5 % , and 1 % level of a one-sided and two-sided hypothesis.
(a) β^1=4.2,SE(β^1)=2.4\hat { \beta } _ { 1 } = 4.2 , S E \left( \hat { \beta } _ { 1 } \right) = 2.4
(b) β^1=0.5,SE(β^1)=0.37\hat { \beta } _ { 1 } = 0.5 , S E \left( \hat { \beta } _ { 1 } \right) = 0.37
(c) β^1=0.003,SE(β^1)=0.002\hat { \beta } _ { 1 } = 0.003 , S E \left( \hat { \beta } _ { 1 } \right) = 0.002
(d) β^1=360,SE(β^1)=300\hat { \beta } _ { 1 } = 360 , S E \left( \hat { \beta } _ { 1 } \right) = 300


Definitions:

Held-To-Maturity Securities

Held-to-maturity securities are financial assets purchased with the intent and ability to hold them until a specified maturity date, typically including certain kinds of bonds.

Fair Market Value

An estimate of the market value of a property, assuming that both buyer and seller are knowledgeable, willing, and under no pressure to transact.

Interest Revenue

Income earned from lending money or depositing funds into interest-bearing accounts.

Unrealized Gain

A profit that exists on paper resulting from an investment that has not yet been sold for cash.

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