If the t-stat for the sample estimate of a coefficient, M1 calculated as the following, t =
, where m1 is the estimated coefficient and Sm1 is the properly estimated standard error for the coefficient, comes out to be 2.7, what is the appropriate conclusion?
A. Fail to reject the null hypothesis that the population coefficient M1 = 1 at a 95% confidence level.
B. Reject the null hypothesis that the population coefficient M1 = 2 at a 99% confidence level.
C. Reject the null hypothesis that the population coefficient M1 = 0 at a 99% confidence level.
D. None of these choices are correct.
Answer: C
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