If Excel estimated the 95 percent confidence interval for a slope coefficient for the price to run from - 2.73 to - 1.67, which of the following is true?
A)You are 95 percent confident that the true slope coefficient is greater than - 2.73.
B)You are 95 percent confident that the true slope coefficient is greater than - 1.67.
C)You are 95 percent confident that the true slope coefficient falls within the range - 2.73 to - 1.67.
D)You are 99 percent confident that the true slope coefficient falls within the range - 2.73 to - 1.67.

Question

If Excel estimated the 95 percent confidence interval for a slope coefficient for the price  to run from - 2.73 to - 1.67, which of the following is true?
A)You are 95 percent confident that the true slope coefficient is greater than - 2.73. 
B)You are 95 percent confident that the true slope coefficient is greater than - 1.67. 
C)You are 95 percent confident that the true slope coefficient falls within the range - 2.73 to - 1.67. 
D)You are 99 percent confident that the true slope coefficient falls within the range - 2.73 to - 1.67.

Quizplus · Accepted Answer

The 95 percent confidence interval estimated by Excel indicates that we are 95 percent confident that the true slope coefficient falls within the range of -2.73 to -1.67. Therefore, we cannot say anything about the direction of the slope, but we can say that there is a high probability that it falls within this range. Option A and B are incorrect because we cannot make any conclusion about the direction of the slope given the confidence interval. Option D is incorrect because the question states that Excel estimated a 95 percent confidence interval, not a 99 percent confidence interval.

If Excel Estimated the 95 Percent Confidence Interval for a Slope