Question

In: Advanced Math

In the Managerial​ Solution, we estimated a focus​ group's demand curve for iTunes downloads. The estimated...

In the Managerial​ Solution, we estimated a focus​ group's demand curve for iTunes downloads. The estimated coefficient on price was

negative 413−413​,

and the​ t-statistic was

negative 12.8−12.8.

Using these​ values, what is the standard error of this estimated​ coefficient?

The standard error of the price coefficient is

32.2732.27.

​(Enter your response rounded to two decimal​ places.)

Suppose we had another focus group​ sample, ran a regression on that​ sample, and obtained the same coefficient on price but with a standard error

fivefive

times as large. What can you say about the statistical significance of the price coefficient in this second​ sample?

The price coefficient

▼

would not be

would be

statistically significantly different than zero at the 0.05 confidence level

Solutions

Expert Solution

Colby Messinger answered 2 years ago
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