Suppose the true inverse demand relation for good X is Qdx = a + bPx + cM + e , and you estimated the parameters to be â = 22, b ˆ = −1.8, σâ = 2.5 , and σb ˆ = 0.7 . Find the approximate 95 percent confidence interval for the true values of a and b.

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.2: The Least Square Line
Problem 1E
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Suppose the true inverse demand relation for good X is Qdx = a + bPx + cM + e , and you estimated the parameters to be â = 22, b ˆ = −1.8, σâ = 2.5 , and σb ˆ = 0.7 . Find the approximate 95 percent confidence interval for the true values of a and b.

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