Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,385.63 - (22.30 × P). In reference to the estimated slope coefficient for price b^, which of the following standard errors gives you the most confidence that the estimated slope coefficient is close to the true slope coefficient? A)22.0 B)- 22.0 C)1.12 D)2.15

Question

Quizplus · Accepted Answer

The smaller the standard error, the more precise the estimate of the slope coefficient will be. Therefore, the standard error of 1.12 gives the most confidence that the estimated slope coefficient is close to the true slope coefficient.

Using Excel, Big Poppa's Estimates the Weekly Demand Function for Its