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:

Technical Analysts

Professionals who evaluate securities through statistical analysis, market indicators, and historical price and volume data.

Stock Prices

The cost of purchasing a share of a company, which fluctuates based on market conditions and company performance.

Insiders

Individuals or entities that have access to non-public, material information about a company, often corporate officers, directors, or significant shareholders.

Informationally Efficient

The concept where a market is said to be informationally efficient if all relevant information is fully and immediately reflected in a security's market price.