### Explain when a researcher is trying to estimate

##### Reference no: EM1353980

''If a 5% significance level is used to test the null that the slope coefficient of a large sample bivariate regression is zero, then the probability that the t-statistic is larger than 1.96 is 2.5% if the null is true.'' True or False. Explain.

''When a researcher is trying to estimate the causal effect of X on Y, and finds that the R^2 of her bivariate regression model is around 0.04, sheg should conclude that her estimates are not precise enough to confirm a causal relationship.' True or False. Explain.

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