T-value

The T-value is a statistic which is used to test a hypothesis by comparing it to a T-distribution. In regression, it is used to determine whether or not a term in the model is significant (See Significance). An assumption is made that the underlying distribution is normal. Then a T-value is calculated under the hypothesis that the true value of the coefficient for that term is zero. If the T-value is large, this hypothesis is rejected because it indicates that the true value is not zero and that the term is indeed significant.

Values: T-values can be either positive or negative.