Using a random sample, an OLS regression of on yields the 95% confidence interval for the slope parameter . Which of the following statements is false?
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DSE 2010 Question 15: Point and interval estimation
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Using a random sample, an OLS regression of Y on X yields the 95% confidence interval 0.43<β<0.59 for the slope parameter β. Which of the following statements is false? (A) This interval contains the parameter β with probability 0.95 (B) The point estimate of β obtained from our regression always lies within this interval (C) The 90% confidence interval for β is a subset of the interval obtained above (D) If such intervals are constructed from repeated samples, then on average 95 out of 100 of these intervals are likely to contain the true parameter value.
Also written as: Using a random sample, an OLS regression of Y on X yields the 95% confidence interval 0.43<beta<0.59 for the slope parameter beta. Which of the following statements is false?
Point and interval estimation has come up 28 times in 6 exams since 2008.
What this question tests
This question is on Confidence intervals, part of Point and interval estimation in Statistics.
Ranges that capture a parameter with a stated confidence level.
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