Reading 11- LOS F (Part 2): Q15 class, 2008, commercial, multiple, between

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15.Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales, housing starts, and commercial construction. The regression uses lumber sales as the dependent variable with housing starts and commercial construction as the independent variables. The results of the regression are:

 

	Coefficient	Standard Error	t-statistics
Intercept	5.37	1.71	3.14
Housing starts	0.76	0.09	8.44
Commercial construction	1.25	0.33	3.78
The level of significance for a 95% confidence level is 1.96

Construct a 95% confidence interval for the slope coefficient for Housing Starts.

A)   0.76 + 1.96(8.44).

B)   0.76 + 1.96(0.09).

C)   1.25 + 1.96(0.33).

D)   1.25 + 1.96(3.78).

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The correct answer was B)

The confidence interval for the slope coefficient is b₁ ± (t_c x s_b1).