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**Basic Question 1 of 2**

You have obtained the following sample regression equation from 25 samples:

y-hat

_{t}= 2.304 + 3.412 X_{t1}- 4.657 X_{2t}The estimated standard errors are 0.87, 1.23 and 1.78 for b

_{0}, b_{1}and b_{2}, respectively. Construct a 95% confidence interval for β_{2}.

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**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? |

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**Learning Outcome Statements**

calculate and interpret a predicted value for the dependent variable, given the estimated regression model and assumed values for the independent variable.

*CFA® 2024 Level II Curriculum, Volume 1, Module 2.*