Reading 11- LOS G : Q5 online, class, experience, education, assigned

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5.An analyst has been assigned the task of evaluating revenue growth for an online education provider company that specializes in training adult students. She has gathered information about student ages, number of courses offered to all students each year, years of experience, annual income and type of college degrees, if any. A regression of annual dollar revenue on the number of courses offered each year yields the results shown below.

Coefficient Estimates
Predictor	Coefficient	Standard Error of the Coefficient
Intercept	0.10	0.50
Slope (Number of Courses)	2.20	0.60

Which statement about the slope coefficient is most correct, assuming a 5 percent level of significance and 50 observations?

A)   t-Statistic: 3.67. Slope: Not significantly different from zero.

B)   t-Statistic: 3.67. Slope: Significantly different from zero.

C)   t-Statistic: 0.20. Slope: Not significantly different from zero.

D)   t-Statistic: 0.20. Slope: Significantly different from zero.

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The correct answer was B)

t = 2.20/0.60 = 3.67.  Since the t-statistic is larger than an assumed critical value of about 2.0, the slope coefficient is statistically significant.