An analyst computes the beta of the computer company WinDoze as 1.7 and the standard error...
An analyst computes the beta of the computer company WinDoze as 1.7 and the standard error of the estimate as 0.3. What is the 95 percent confidence interval for the calculated beta? how your work with explanation!
Homework Answers
margin of error = z-score * standard error
= 1.96 * 0.3
= 0.588
lower bound = mean - margin of error
= 1.7 - 0.588
= 1.112
Upper bound = mean + margin of error
= 1.7 + 0.588
= 2.288
hence the interval is [1.112,2.288]
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