Explanation:
Degrees of freedom are equal to: . The critical t-value is 2.048 at the 95% confidence level (two-tailed test). The estimated slope coefficient is 2.008 and the standard error is 0.754. The 95% confidence interval is then
$2.008 \pm (2.048)(0.754) = 2.008 \pm 1.544 = 0.4643.55`2$.
(Book 2, Module 18.3, LO 18.e)
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Question 72
A risk analyst is attempting to calculate a 95% confidence interval for a regression equation. Assume the number of sample observations is 31, and that the critical two-tailed 5% significance level t-values are 2.042 for 30 degrees of freedom and 2.048 for 28 degrees of freedom. Based on the following information, what are the lower and upper bounds for independent variable B?
| Coefficient | Standard Error | |
|---|---|---|
| Intercept | -4.45 | 3.299 |
| A | 2.057 | 0.337 |
| B | 2.008 | 0.754 |
A
0.468 to 3.548.
B
0.464 to 3.552.
C
1.254 to 2.762.
D
2.393 to 2.442.
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