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Significance test

Significance test

This is a particular case of a t-test where the null hypothesis is interpreted as showing that the corresponding exogenous variable Xt has no explanatory power in the regression. For the joint significance of a subset of parameters, a test of the null hypothesis that all parameters in the subset are zero against the alternative hypothesis that at least one of these parameters is not zero; this is a particular case of an F-test.

Reference: Oxford Press Dictonary of Economics, 5th edt.