If the coefficient on a variable is -14.2 and the standard error is 4.4, is the...

If the coefficient on a variable is -14.2 and the standard error is 4.4, is the squirrel variable statistically significant?

a. yes

b. no

Expert Solution

No

(t statistic can be used to know whether coefficient is significant or not. It absolute value of t statistic is less than the level of significant ( which can be 0 .01 or 0.05), then coeeficient is significant.

t statistic = coefficient/ standard error of coeeficient.

t statistic = -14 .2/4.4

= -3.22

Absolute value of t statistic= 3.22

3.22>0.05 ( usual p value)

So variable is insignificant.)

Rahul Sunny answered 2 years ago

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