Question

True or False. (One sentence explanation.) ii. Suppose two variables are related by the following formula:...

True or False. (One sentence explanation.)

ii. Suppose two variables are related by the following formula: Z = 57X +3. The t-statistic on the null hypothesis that the slope coefficient is equal to zero will be the same in a regression of Y on X as in a regression of Y on Z.


iii. Suppose two variables are related by the following formula: Z = ln(X). The t-statistic on the null hypothesis that the slope coefficient is equal to zero will be the same in a regression of Y on X as in a regression of Y on Z.

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Answer #1

Therefore False for (ii) ,(iii)

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