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Basic Question 1 of 2

You have obtained the following sample regression equation from 25 samples:

y-hatt = 2.304 + 3.412 Xt1 - 4.657 X2t

The estimated standard errors are 0.87, 1.23 and 1.78 for b0, b1 and b2, respectively. Construct a 95% confidence interval for β2.

User Contributed Comments 3

User Comment
headac where is 1.78 coming from? T table
nowornever its given as the estimated standard eror for b2
CFAJ how do we know this is a two tailed test?
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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

calculate and interpret a predicted value for the dependent variable, given the estimated regression model and assumed values for the independent variable.

CFA® 2025 Level II Curriculum, Volume 1, Module 2.