Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,258.33 - (19.55 × P). In reference to the estimated slope coefficient for price , which of the following standard errors will provide the smallest 95 percent confidence interval for the slope coefficient? A)3 B)1.25 C)0.50 D)0.95

Question

Quizplus · Accepted Answer

The standard error measures the variability of the estimated slope coefficient. Smaller standard errors indicate greater precision in the estimate. Therefore, we want to choose the standard error that is smallest to get the smallest 95 percent confidence interval for the slope coefficient. Among the options provided, C) 0.50 is the smallest, so it is the best choice.

Using Excel, Big Poppa's Estimates the Weekly Demand Function for Its