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What does a t-statistic of 1.35 for a coefficient on a variable mean in the context...

What does a t-statistic of 1.35 for a coefficient on a variable mean in the context of an empirical study in economics? Why?

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Expert Solution

The t-statistic test is a small sample test which is used when the population standard deviation value is unknown. The t-statistic value of 1.35 for a coefficient on a variable mean is used to test whether there is significant difference between the sample mean and the population mean. If for the given value of degrees of freedom, the table t value is less than 1.35 then we can say that the sample coefficient on a variable mean is significantly different from the population coefficient on a variable mean. However, if for the given value of degrees of freedom, the table t value is more than 1.35 then we can say that the sample coefficient on a variable mean is not-significantly different from the population coefficient on a variable mean.

Rahul Sunny answered 2 years ago
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