If You Are Using a 95% Confidence Interval and the Absolute

question 85

Multiple Choice

If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then

• A)we accept the null hypothesis at a 95% confidence level.
• B)we reject the null hypothesis at a 95% confidence level.
• C)we will be wrong less than 5% of the time if we accept the null hypothesis.
• D)we will be wrong 95% of the time if we reject the null hypothesis.

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Definitions:

Inflation-Adjusted

Pertains to financial figures that have been modified to account for inflation, thereby reflecting the true purchasing power of money over time.

Predictor Variables

Variables in statistical modeling that are used to predict or explain changes in a response variable.

Sequential Sums Of Squares

A method in statistics used to break down the total variation explained by a model into components related to each predictor variable.

Total Variation

In statistics, the total sum of squares that measures the overall variation within a dataset.