If Excel Estimated the 95 Percent Confidence Interval for a Slope

question 50

Multiple Choice

If Excel estimated the 95 percent confidence interval for a slope coefficient for the price to run from - 15.50 to - 12.30, which of the following is true?

• A)You are 95 percent confident that in response to dollar increase in price, consumers will decrease the quantity demanded by an amount greater than 12.30.
• B)You are 95 percent confident that in response to dollar increase in price, consumers will increase the quantity demanded by an amount that lies between 12.30 and 15.50.
• C)You are 95 percent confident that in response to dollar increase in price, consumers will decrease the quantity demanded by an amount that lies between 12.30 and 15.50.
• D)You are 95 percent confident that in response to dollar increase in price, consumers will decrease the quantity demanded by an amount less than 15.50.

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Definitions:

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Dependent Variable

A variable whose value depends on that of another, used in experiments to test the effects of changes in an independent variable.

Regression Analysis

A statistical method for estimating the relationships among variables, often used for forecasting and predicting outcomes.

High-low

A technique used in accounting and finance to estimate fixed and variable costs by analyzing the highest and lowest levels of activity.