Question

Consider the following time series data of sales per year: Year Sales 1995 22.2 1996 23.0 1997 24.4 1998 25.8 1999 27.6 Enter these data in Excel and run the following regression: Sales = Intercept + Slope * Year Note that the Year is the independent variable and Sales is the dependent variable. A 95% confidence interval for the slope is:
a. (-3233.88, -2068.92)
b. (1.04, 1.68)
c. (0.80, 1.88)
d. (0.92,1.76)
e. (-3482.53,-1820.27)

Answer 1

Answer:

b. (1.04, 1.68)

Step-by-step explanation:

Hello!

With the given data I've estimated the regression line

Y: Sales

X: Year

Yi= -2691.32 + 1.36Xi

Where

a= -2691.32

b= 1.36

The 95% CI calculated using the statistic b±$t_{n-1;1-\alpha/2}$*(Sb/√n) is [1.04;1.68]

I hope it helps.