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An Econometrician has estimated the inverse demand relation as:

P = a + b Q + e and found that a = 400, b = -2.75, e (a) = 8, e (b) = 0.75.

Find the approximmate 95% confidence interval for the true values of a and b.

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The expert determines the confidence interval.

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Assuming that we have a large sample size, say, > 30 observations, then we can use z

statistic to construct the 95% confidence interval.
Interval ...

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