Practice Exams Vol 2. - Exam 1PM its, set, understand, hypothesis, reported

TheMBAGlover

Hi,
Anybody else having done this set? I dont understand the explanations to a few of the questions:
Question 67:
…
The null hypothesis associated with each of the t-statistics reported for the slope estimates in Table 1 is: Ho: slope = zero. So, the standard error equals the slope estimate divided by its t-statistic: 0.1000 / 2.85 = 0.035.
..
0.2000

spartanag07

I believe the 2nd part of the problem you need to do LN(500) and not LN(500000000) as you have done. It must mention that SIZE is in Millions. If you used 500, you definitely get 0.1414 – 14.14%

Howd

I didnt even think about that!!! It would have been a really stupid mistake to make on June 6.
However, I cannot find anywhere in the text where it mentions that the size is in Millions.