3.3 Properties and Statistical Significance of Estimated Coefficients
Mai is particularly concerned about how close the estimated coefficients of the demand function Equation 3.4, [&*lcacc*{a}{|Ahat|}&] and [&*lcacc*{b}{*N*[0%-2]|Ahat|*N*[0%2]},&] are to the true values. She cares because they determine how reliably she can predict the reduction in the number of pies she sells if she raises her price.
We now discuss the properties of these estimated coefficients and describe statistics that indicate the degree of confidence we can place in these estimated coefficients. These statistics can be obtained using most regression software, including the regression tools in Excel.
Repeated Samples
The intuition underlying statistical ...
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