If We Are Testing the Significance of the Independent Variable

question 62

Multiple Choice

If we are testing the significance of the independent variable X₁ and we reject the null hypothesis H₀: β₁ = 0, we conclude that

• A) X₁ is significantly related to y.
• B) X₁ is not significantly related to y.
• C) X₁ is an unimportant independent variable.
• D) β₁ is significantly related to the dependent variable y.

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Definitions:

Production Possibility Frontier

An illustration representing the peak production capabilities of two items, based on available resources.

Capital

Assets used for the production of goods and services, including machinery, buildings, and equipment.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.

Capital

Refers to financial resources, machinery, and buildings used for producing goods and services.