<\/span><\/h2>\n\nThe t-statistic is accompanied by a p-value, which represents the probability of observing a result as extreme as or more extreme than what was obtained, assuming the null hypothesis is true. If the p-value is below a predetermined significance level (commonly set at 0.05), we can reject the null hypothesis and conclude that there is a statistically significant relationship between the variables.<\/p>\n
The t-statistic itself helps us determine whether the effect of a variable is statistically significant or not.<\/b> If the absolute value of the t-statistic is large (greater than the critical value), then the variable has a significant effect. However, if the absolute value of the t-statistic is small (less than the critical value), then the variable does not have a significant effect. The sign of the t-statistic indicates the direction of the effect; positive values indicate a positive relationship, while negative values indicate a negative relationship.<\/p>\n