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Basic Question 11 of 14
An analyst is currently reviewing the following regression analysis:
B. Since the calculated t-statistic of 2.88 exceeds the critical t-statistic, the null hypothesis is rejected.
C. Since the calculated t-statistic of 6.88 falls within the critical t-statistic, the null hypothesis is accepted.
At a significance level of 5%, which of the following statements would best reflect the null hypothesis that coefficient of the first independent variable is equal to 1.0?
A. Since the calculated t-statistic exceeds the critical t-statistic of 1.68, the null hypothesis is rejected.
B. Since the calculated t-statistic of 2.88 exceeds the critical t-statistic, the null hypothesis is rejected.
C. Since the calculated t-statistic of 6.88 falls within the critical t-statistic, the null hypothesis is accepted.
User Contributed Comments 5
| User | Comment |
|---|---|
| grewei | Wouldn't the critical t-statistic be between 2.000 and 2.021? The answer (B) is the same but I come up with a different critical t-statistic. |
| noonah | Should not we use the F-statistic since it is a multiple regression? |
| noonah | Oops, discard above comment. We can use the t-statistic since we are testing the significance of only one indep. variable, rather than ALL of them. |
| aruffo | What formula is being used to calculate the t-test here? |
| awbronson | @aruffo me thinks... {B(hat) - B)} / Stand Error of B(hat) .... pg 298 in print CFA curriculum |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
calculate and interpret measures of fit and formulate and evaluate tests off it and of regression coefficients in a simple linear regression
CFA® 2025 Level I Curriculum, Volume 1, Module 10.