# confidence interval

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.

© BrainMass Inc. brainmass.com June 3, 2020, 6:19 pm ad1c9bdddfhttps://brainmass.com/statistics/confidence-interval/inverse-demand-relation-problem-55670

#### Solution Preview

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

statistic to construct the 95% confidence interval.

Interval ...

#### Solution Summary

The expert determines the confidence interval.

$2.19