If you want to test, using a 5% significance level, whether or not a specific slope coefficient is equal to one, then you should
A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96.
B) add and subtract 1.96 from the slope and check if that interval includes 1.
C) see if the slope coefficient is between 0.95 and 1.05.
D) check if the adjusted R2 is close to 1.
Answer: A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96.
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The interest rate is 8 percent. The present value of $110 three years from now equals
A) $101.85. B) $94.31. C) $118.80. D) $128.30.
A model in which workers won't be concerned about the possibility of being fired if they don't work hard, because their wage is so low, is called
A) a cost—benefit model. B) a job—stress model. C) a gift—exchange model. D) a shirking model.