PRMIA Exam 8007 Topic 1 Question 84 Discussion

Actual exam question for PRMIA's 8007 exam

Question #: 84
Topic #: 1

A linear regression gives the following output:

Figures in square brackets are estimated standard errors of the coefficient estimates. What is the value of the test statistic for the hypothesis that the coefficient of is zero against the alternative that is less than zero?

A0.125

B2.5

C-1.25

D-2.5

Show Suggested Answer

Suggested Answer: D

by Tawanna at Sep 19, 2024, 05:24 PM

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Delsie

3 months ago

I'm so tired of these linear regression questions. Can we just skip to the part where we learn how to cook bacon in the microwave?

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Ellsworth

3 months ago

Haha, these regression questions are always a blast! I'm going with C) -1.25, just to keep you on your toes.

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Elin

2 months ago

User3: I agree with User1, it's B) 2.5

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Lindsey

2 months ago

User2: I'm going with D) -2.5

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Cristen

2 months ago

I think the answer is B) 2.5

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Cherilyn

3 months ago

I'm not sure, but I think it might be C) -1.25. Can someone explain the rationale behind the test statistic?

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Belen

3 months ago

Wait, is this a trick question? The absolute value of the t-statistic is what matters, not the sign. I think the correct answer is B) 2.5.

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Penney

2 months ago

Yes, that's correct. The absolute value of the t-statistic is what we need to consider.

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Staci

2 months ago

So, the correct answer is B) 2.5 then?

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Georgeanna

3 months ago

Actually, I think you're right. The sign doesn't matter for the t-statistic.

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Kizzy

3 months ago

I'm not sure about that, I think the correct answer is C) -1.25.

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Ellsworth

3 months ago

I agree with Myrtie, because a negative test statistic indicates the coefficient is less than zero.

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Ty

3 months ago

Hmm, the test statistic for the hypothesis that the coefficient of x is zero against the alternative that x is less than zero is the t-statistic. Based on the output, I'd say the answer is D) -2.5.

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