In the Managerial? Solution, we estimated a focus? group'sdemand curve for iTunes downloads. The estimated coefficient onprice was
negative 413?413?,
and the? t-statistic was
negative 12.8?12.8.
Using these? values, what is the standard error of thisestimated? coefficient?
The standard error of the price coefficient is
32.2732.27.
?(Enter your response rounded to two decimal? places.)
Suppose we had another focus group? sample, ran a regression onthat? sample, and obtained the same coefficient on price but with astandard error
fivefive
times as large. What can you say about the statisticalsignificance of the price coefficient in this second? sample?
The price coefficient
?
would not be
would be
statistically significantly different than zero at the 0.05confidence level
