A Large "T-Statistic" Tell Us That

question 19

Multiple Choice

A large "T-statistic" tell us that

• A)a tiny change in the independent variable will cause a relatively large change in the dependent variable.
• B)we do not have enough data to obtain an accurate regression line.
• C)we can be confident that our estimated coefficient is not zero.
• D)we should have included more "lags" in our model.
• E) we have incorrectly switched the dependent and independent variables in our model.

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Definitions:

Slope

The measure of the steepness or incline of a line or surface, typically described as a ratio of vertical change to horizontal change.

Budget Line

An illustration showing all the combinations of two items that can be bought given certain prices and a specified budget.

Price

The amount of money expected, required, or given in payment for something; it acts as a signal for scarcity or abundance of a product.

Budget Line

A depiction showcasing all feasible combinations of two articles that can be purchased, provided there's a fixed budget and the prices remain the same.