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    confidence interval

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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.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:19 pm ad1c9bdddf

    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.