The beta of the computer company is 1.7 and the standard error of the estimate is 0.3. What is the range of values for beta, that has 95% chance of being right?
A) 1.1 - 2.3
B) 1.4 - 2.0
C) 1.5 - 2.0
D) None of the above

Question

Quizplus · Accepted Answer

The 95% confidence interval is calculated as beta ± (1.96 * standard error). Here, it is 1.7 ± (1.96 * 0.3), which gives the range 1.1 to 2.3.

The Beta of the Computer Company Is 1