Author Question: Using 143 observations, assume that you had estimated a simple regression function and that your ... (Read 303 times)

RYAN BANYAN · **on:** Jun 29, 2018

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.

Question 2

An estimator is

A) an estimate.
B) a formula that gives an efficient guess of the true population value.
C) a random variable.
D) a nonrandom number.