# Question

In the Managerial Solution, we estimated a focus group’s demand curve for iTunes downloads. The estimated coefficient on price was – 413, and the t- statistic was – 12.8.

a. Using these values, what is the standard error of this estimated coefficient?

b. Suppose we had another focus group sample, ran a regression on that sample, and obtained the same coefficient on price but with a standard error 10 times as large. What can you say about the statistical significance of the price coefficient in this second sample?

a. Using these values, what is the standard error of this estimated coefficient?

b. Suppose we had another focus group sample, ran a regression on that sample, and obtained the same coefficient on price but with a standard error 10 times as large. What can you say about the statistical significance of the price coefficient in this second sample?

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