Quantitative Analysis 【Reading 12】Sample
Consider the following estimated regression equation, with calculated t-statistics of the estimates as indicated: AUTOt = 10.0 + 1.25 PIt + 1.0 TEENt – 2.0 INSt
with a PI calculated t-statstic of 0.45, a TEEN calculated t-statstic of 2.2, and an INS calculated t-statstic of 0.63.
The equation was estimated over 40 companies. Using a 5% level of significance, which of the independent variables significantly different from zero?
The critical t-values for 40-3-1 = 36 degrees of freedom and a 5% level of significance are ± 2.028. Therefore, only TEEN is statistically significant. |