Using 143 Observations, Assume That You Had Estimated a Simple

question 46

Multiple Choice

Using 143 observations, assume that you had estimated a simple regression function and that your estimate for the slope was 0.04, with a standard error of 0.01. You want to test whether or not the estimate is statistically significant. Which of the following possible decisions is the only correct one:

• A)you decide that the coefficient is small and hence most likely is zero in the population
• B)the slope is statistically significant since it is four standard errors away from zero
• C)the response of Y given a change in X must be economically important since it is statistically significant
• D)since the slope is very small, so must be the regression R².

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