Using 143 Observations,assume That You Had Estimated a Simple Regression

question 28

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.

---

Definitions:

Tertiary Sector

The segment of the economy that provides services rather than goods, including sectors like retail, education, healthcare, and financial services.

Economy

A system of production, distribution, and consumption of goods and services within a society or geographical area.

Addictions Counsellor

A professional who specializes in providing guidance and treatment for individuals dealing with substance abuse and behavioral addictions.

At-Risk Youth

Refers to young people who are exposed to the risk of poor outcomes due to socio-economic, behavioral, or family-related factors.