The tstatistic measures Question 5 options A whether the est

The t-statistic measures Question 5 options: A) whether the estimated coefficient is large relative to the standard error. B) whether the estimated coefficient is independent of the standard error. C) the probability that the estimated coefficient is within the range of the standard error. D) the efficiency of the t-test relative to the standard z-test.

Solution

Correct Answer:

A.Whether the estimated coefficient is large relative to the standard error

Explanation:

It is a ratio that uses the difference between the actual value and hypothesis value and the standard error. The ratio indicates that largeness of the estimated coefficient w.r.t. the standard error calculated as per the given values.