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Dan Gates, CFA is forecasting price elasticity of demand for GMX Inc's products. Gates used monthly revenues for the past four years as the dependent
Dan Gates, CFA is forecasting price elasticity of demand for GMX Inc's products. Gates used monthly revenues for the past four years as the dependent variable ($ millions) and price per unit as the independent variable. The results are shown below. Sales = 23.45-0.6 Price Standard error (intercept) = 10.22 Standard error (slope) = 0.03 Standard error of estimate = 8.32 Standard error of forecast = 8.93 Use the following t-table for this question: Area in Right Tail 5.0% 2.5% 1.0% 45 1.679 2.014 2.412 46 1.679 2.013 2.410 47 1.678 2.012 2.408 48 1.677 2.011 2.407 49 1.677 2.010 2.405 50 1.676 2.009 2.403 51 1.675 2.008 2.402 The 95% confidence interval for predicted value of monthly sales given price was $2.00 per unit is closest to
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