
Explanation:
The confidence interval is given by:
The critical value () at 1% (0.5% on each tail) level is 2.618. (From the standard normal table)
Now, is given by,
So,
= [1.3997, 1.9002]$$Ultimate access to all questions.
A regression analysis of monthly returns of a sales company on the market return over ten years gives an intercept of , the slope . Other quantities include: , and . The analyst wishes to test whether the slope coefficient is different from 0. What is 99% confidence interval for ?
A
[1.6034, 1.8906]
B
[1.3034, 1.8966]
C
[1.3997, 1.9002]
D
[1.5034, 1.6976]
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