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You believe that variable directly (positively) affects the value of variable. After running a regression, the parameter estimate of is +0.49 and the-statistic is 0.03.

You believe that variable directly (positively) affects the value of variable. After running a regression, the parameter estimate of is +0.49 and the-statistic is 0.03. You would thus conclude that

Select one:

a.

Since the-statistic is less than the parameter value, the relationship betweenandis actually negative or inversely related.

b.

The parameter has the correct sign and is statistically significant.

c.

While statistically significant, the parameter has an unexpected sign. Thevariable should be discarded from the regression model and re-run.

d.

The parameter has the expected sign but is statistically insignificant; therefore you cannot rule out the possibility that has no discernible effect on.

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