If we have a small standard error, then
A)the estimated coefficient is small.
B)the true demand function has imprecise coefficients.
C)the expected variation of the estimated coefficient is small.
D)the estimated coefficients are imprecise indicators of the true values.

Question

Quizplus · Accepted Answer

A small standard error indicates that the estimated coefficient is likely to be close to the true coefficient, with less expected variation. Therefore, the expected variation of the estimated coefficient is small.

If We Have a Small Standard Error, Then