Question

Please help with question number 2. Thank you

Sample MCT Questions a) b) The annual number of ice-creams sold in the UK from 2000-2018 Which of these is NOT an example of time-scries data Daily rain fall in Reading during October 2018 The price of all the stocks in the FISE100 today d) Vice-chancellor salaries from 2010-2018 2. You run a trading strategy on a constant and the return on the market. The intercept and slope estimates are 0.541 and -0.243 respectively. The t-ratio associated with the slope is 0.99, what is the standard error of the slope? a) 0.245 b)0.108 c) 0.020 d) T here is not enough information to answer this questio Which of the following is false: a) The t-ratio is a special case of the t-statistic 3. b) c) The t-ratio decreases as the standard error increases If the estimated parameter equals 0, then the t-ratio equals 0 The t-ratio cannot take negative values correct: lly true

Answer 1

$t = \frac{\hat \beta_1 - 0}{se(\hat \beta_1)}$

where, $\hat \beta_1$ is the estimate of slope

Now given, t = 0.99, $\hat \beta_1$ = -0.243

So,

$se(\hat \beta_1) = \frac{\hat \beta_1}{t} = \frac{-0.243}{0.99} = -0.245$

So Option (a) is correct.

** If the answer does not match please comment.