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In: Statistics and Probability

If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3....

If you estimate the beta OLS for stock i is 1.5, the standard error is 0.3. To test the two null hypothesis:β=3.5,β=-1，can you reject these two null hypotheses at 10% significance level with the tcritical = 2.96?

A.

β=3.5 cannot be rejected,β=-1 can be rejected
B.

β=3.5 can be rejected,β=-1 cannot be rejected
C.

β=3.5 can be rejected,β=-1 can be rejected
D.

β=3.5 cannot be rejected,β=-1 cannot be rejected

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orchestra answered 1 year ago
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