CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

You are given the following regression equation:

% Sales Growth = 6.253 + 0.7GDP

where Sb0 = 1.78, Sb1 = 0.21, and SEE = 2.79.

Which of the following best estimates the 95% confidence interval within which the population regression coefficient must fall within?
A. 0.29 - 1.11
B. 0.35 - 1.05
C. 0.61 - 0.84
Explanation: 95% confidence intervals = b1 ± 2Sb1 = 0.7 ± 1.96 (0.21)

User Contributed Comments 4

User Comment
dblueroom is 90% 1.96 then?
malawyer db, its two-tailed because it asks about a range not a point
kazec Without knowing DOF, how do you get 1.96???
dakota6789 @kazec
just a guess, but maybe there is enough GDP data that dof > 100, essentially a z-test
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