Is the coefficient for the unemployment rate variable statistically significant at the 5% significance level? Explain.

MATLAB: An Introduction with Applications
6th Edition
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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You are conducting a multiple regression analysis to determine if there is a linear relationship between y, the number of applications to in-state universities and two factors: x1, the state’s unemployment rate and x2, the average grant provided to in-state students. Ten observations are available. The analysis produced the estimated regression equation below.

y = 6.5 + 2.2x1 + 4.6x2

The standard error for the intercept, unemployment rate are 9.34, and 1.23, respectively.

Is the coefficient for the unemployment rate variable statistically significant at the 5% significance level? Explain.

Answer choices:
A. No, since the p-value for this coefficient is .072, which is greater than .05
B. No, since the p-value for this coefficient is .072, which is greater than .05
C. None of these
D. No, since tstat = 1.39 for this coefficient, which is less than 2.365.
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