A student's t-test would be useful in which of the following? Choose the correct answer from the options given below.

1.Testing the significance of the difference of two sample means

2.Testing the stationarity of a time series

3.Testing the significance of a correlation coefficient

4.Testing the significance of a regression coefficient

5.Testing the goodness of fit of a model

A1, 2 and 3 only

B2, 3 and 4 only

C1, 3 and 4 only ✓ Correct

D1, 2, 4 and 5 only

Correct answer: (C) 1, 3 and 4 only

Explanation

A t-test suits testing the difference of two sample means and the significance of correlation and regression coefficients.

Statement one, difference of two sample means, is the classic use of the two sample t-test.

Statement three, significance of a correlation coefficient, is tested with a t-statistic.

Statement four, significance of a regression coefficient, likewise uses a t-test on the estimate.

Statement two, stationarity of a time series, needs unit root tests, not a t-test.

Statement five, goodness of fit, is judged by chi-square or F tests instead.

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