Suppose the true inverse demand relation for good X is P a bQ e, and you estimated the parameters to be 10, b 2 5, a 1, and b 0 5 Find the approximate 95 percent confidence interval for the true values of a and b

Question: Suppose the true inverse demand relation for good X is P = a + bQ + e, and you estimated the parameters to be

Suppose the true inverse demand relation for good X is P = a + bQ + e, and you estimated the parameters to be â = 10, b = – 2.5, σa = 1, and σb = 0.5. Find the approximate 95 percent confidence interval for the true values of a and b.

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