Assume That the Two-Sided 95% Confidence Interval for the Effect

question 5

Multiple Choice

Assume that the two-sided 95% confidence interval for the effect of a price on amount of beef purchased is between 0.30 and 0.38. Which of the following statements is incorrect?

• A) We will reject the null hypothesis that this coefficient equals zero.
• B) There is less than a 2.5% chance that a coefficient higher than 0.38 would produce the coefficient we actually observe.
• C) There is a 95% chance that the true coefficient is between 0.30 and 0.38.
• D) There is a 95% chance that a random sample will produce a confidence interval that includes the true coefficient.

---

Definitions:

Finance Costs

Expenses associated with borrowing money, including interest payments, bank charges, and other related costs.

Line Item

A specific and individual entry recorded in a financial statement or budget that represents income, expense, asset, or liability.

Closing Inventories

The total value of goods available for sale at the end of an accounting period, recorded on the balance sheet.

Non-Controlling Interests

The portion of equity in a subsidiary not attributable directly or indirectly to the parent company, sometimes referred to as minority interest.