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?