You estimate a simple linear regression model using a sample of 25 observations and obtain the following results (estimated standard errors in parentheses below coefficient estimates):

y = 97.25 + 19.74 *x

(3.86)(3.42)

You want to test the following hypothesis:H0: 2= 12, H1: 2>12. If you choose to reject the null hypothesis based on these results, the probability you have committed a type I error comes from a t-ratio (19.74-12)/3.42 distributed with 23 degrees of freedom.

Select one:

True

False

The answer is True but I need to know why True is the answer