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A researcher wants to examine if earnings is related to height of individuals in the following way: EARNINGS = β1 + β2 HEIGHT + u. With data on 48 individuals, he wants to test if β2 = 0 against the alternative β2 ≠ 0. The critical values of t for 5% and 1% levels are given in the table below. What would the researcher's conclusion be if b2 = 0.10, s.e.(b2) = 0.12?

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MCQs on Econometrics, which is the use of statistical methods to develop theories or test existing hypotheses in economics or finance. 
 


A researcher wants to examine if earnings is related to height of individuals in the following way: EARNINGS = β<sub>1</sub> + β<sub>2</sub> HEIGHT + u. With data on 48 individuals, he wants to test if β<sub>2</sub> = 0 against the alternative β<sub>2</sub> ≠ 0. The critical values of t for 5% and 1% levels are given in the table below. What would the researcher's conclusion be if b<sub>2</sub> = 0.55, s.e.(b<sub>2</sub>) = 0.12?<br><img src='https://www.fatskills.com/images2/GradExams/837747F2-D976-4230-BB77-495D28B03CFC.png' height='242' width='653'/>





 
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