The t-statistic for testing the null hypothesis H0: βi = 0 is t = (bi − 0) / σi, where βi is the population parameter for independent variable i, bi is the estimated coefficient, and σi is the coefficient standard error. Using the information provided, the t-statistic for size can be computed as t = bSize / σSize = 0.6 / 0.18 = 3.3333.
(Study session 3, LOS 12.b)
