You give a final attempt to bring the effect of Size back into the equation by forcing the assumption of homoskedasticity onto your estimation. The results are as follows: cost^= = 7,311.17 + 3,985.20 × Reputation – 0.20 × Size                  (1,985.17) (593.65)                           (0.07) + 8,406.79 × Dpriv – 416.38 × Dlibart – 2,376.51 × Dreligion                   (1,423.59) (1,096.49)             (989.23) R 2=0.72, SER = 3,682.02 Calculate the t-statistic on the Size coefficient and perform the hypothesis test that its coefficient is zero.  Is this test reliable? Explain.

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You give a final attempt to bring the effect of Size back into the equation by forcing the assumption of homoskedasticity onto your estimation. The results are as follows:

cost^= = 7,311.17 + 3,985.20 × Reputation – 0.20 × Size
                 (1,985.17) (593.65)                           (0.07)
+ 8,406.79 × Dpriv – 416.38 × Dlibart – 2,376.51 × Dreligion
                  (1,423.59) (1,096.49)             (989.23)

R 2=0.72, SER = 3,682.02
Calculate the t-statistic on the Size coefficient and perform the hypothesis test that its coefficient is zero.  Is this test reliable? Explain.

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