An Economist Estimates the Following Model: Y = β₀

question 71

Multiple Choice

An economist estimates the following model: y = β₀ + β₁x + ε. She would like to construct interval estimates for y when x equals 2. She estimates a modified model where y is the response variable and the explanatory variable is now defined as x⁺ = x - 2. A portion of the regression results is shown in the accompanying table. According to the modified model, which of the following is a 95% confidence interval for E(y) when x equals 2? (Note that t_0.025,10 = 2.228.)

• A) [0.41, 4.63]
• B) [14.21, 35.35]
• C) [18.63, 30.93]
• D) [20.35, 25.65]

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