Suppose that you are interested in estimating the average impact a job training program has on wages. After controlling for observed factors that influence wages, participation in the training program, you find that the coefficient for the training is 0.55 and the standard error is 1.06. Thus, we can infer that the training program has a positive and statistically significant impact on wages at a 95% confidence level.
Answer the following statement true (T) or false (F)
False
Rationale: The standard error is greater than the point estimate, which means that the effect is not statistically significant. To put it differently, the t-statistic of 0.52, calculated as (0.55/1.06), is too small for this effect to be considered statistically significant at a 95% confidence level.
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