Reading 11- LOS F (Part 2): Q18 class, 2008, following, equation, style

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18.Consider the following estimated regression equation:

ROE_t = 0.23 - 1.50 CE_t

The standard error of the coefficient is 0.40 and the number of observations is 32. The 95 percent confidence interval for the slope coefficient, b₁, is:

A)   {-2.317 < b₁ < -0.683}.

B)   {0.683 < b₁ < 2.317}.

C)   {-2.300 < b₁ < -0.700}.

D)   {-3.542 < b₁ < 0.542}.

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The correct answer was A)

The confidence interval is -1.50 ± 2.042 (0.40), or {-2.317 < b₁ < -0.683}.