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If You Wanted to Test, Using a 5% Significance Level

Question 38

Multiple Choice

If you wanted to test, using a 5% significance level, whether or not a specific slope coefficient is equal to one, then you should


A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96.
B) add and subtract 1.96 from the slope and check if that interval includes 1.
C) see if the slope coefficient is between 0.95 and 1.05.
D) check if the adjusted R2 is close to 1.

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