If the following equation is estimated using OLS, and a 95% confidence interval for is constructed, then which of the following is true?
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DSE 2016 Question 1: Point and interval estimation
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If the following equation is estimated using OLS, and a 95% confidence interval for β₁ is constructed, then which of the following is true? (A) The OLS estimate of β₁ lies in the given interval with 95% probability (B) The true value of β₁ lies in the given interval with 95% probability (C) In repeated sampling 95% of the times the confidence interval will contain the true value of β₁ (D) Both (B) and (C)
Also written as: If the following equation is estimated using OLS, and a 95% confidence interval for beta_1 is constructed, then which of the following is true?
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.
TestStop has 10 past-paper questions on this subtopic.
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