Using Excel, the manager of Quick Breaks Coffees has estimated the daily demand function for its regular coffees; the results are shown in the table above. Which of the following statements is correct?
A)The manager can be 95 percent confident that the true slope coefficient for price is positive.
B)The manager can be 95 percent confident that the true slope coefficient for price lies between - 24.01 and - 20.96.
C)The manager can be 95 percent confident that the true slope coefficient for price is greater than - 24.01.
D)The manager can be 95 percent confident that the true slope coefficient for price is equal to zero.

Question

Quizplus · Accepted Answer

Since the p-value for the coefficient of price is less than 0.05, we can reject the null hypothesis that the coefficient is equal to zero. Therefore, we can say that the price variable has a significant effect on the demand for regular coffees. Additionally, the 95% confidence interval for the slope coefficient of price is -24.01 to -20.96, which means that we can be 95% confident that the true slope coefficient lies within this range. Therefore, statement B is correct. Statements A, C, and D are incorrect.

Using Excel, the Manager of Quick Breaks Coffees Has Estimated