Which of the following statements is correct? Regression Statistics Multiple FR

Question

Which of the following statements is correct?

Regression Statistics Multiple FR 0.98 0.96 0.95 3.3 35 re usted R S tandard Error Observations Coefficients Standard Error t Stat 53.16 30.11 170.03 22.48 3.19 0.74 P-value 0.00 0.00 Lower 95% 163.53 -24.01 Upper 95% 176.54 -20.96 tercept Price The manager of Starlight Coffees has estimated the daily demand function for its regular coffees; the results are shown in table 1.1 above. Which of the following statements is correct? O The critical value exceeds the t-statistic for the estimated slope coefficient. O The manager can be confident that the price of coffees affects the quantity demanded O The manager can be confident that the true slope coefficient for price is equal to zero. O The standard error exceeds the t-statistic for the estimated slope coefficient.

Explanation / Answer

The manager can be confident that the price of coffees affects the quantity demanded.

The absolute value of calculated t stat is 30.11 which is greater than 1.96 which is a critical t stat value. This implies that price has significant effect on dependent variable.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.