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

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Expert Solution

Colby Messinger answered 2 years ago

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

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