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Basic Question 1 of 2
You have obtained the following sample regression equation from 25 samples:
y-hatt = 2.304 + 3.412 Xt1 - 4.657 X2t
The estimated standard errors are 0.87, 1.23 and 1.78 for b0, b1 and b2, respectively. Construct a 95% confidence interval for β2.

User Contributed Comments 3
| User | Comment |
|---|---|
| headac | where is 1.78 coming from? T table |
| nowornever | its given as the estimated standard eror for b2 |
| CFAJ | how do we know this is a two tailed test? |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.

Edward Liu
Learning Outcome Statements
describe how model misspecification affects the results of a regression analysis and how to avoid common forms of misspecification;
CFA® 2026 Level II Curriculum, Volume 1, Module 2.