Based on annual data from 19902010 the following regressions

Based on annual data from 1990-2010, the following regressions were obtained: Model A: i = 2.69 – 0.48Xi R2 = .66 (.122) (.114) Model B: ln(i) = 0.78 – 0.25ln(Xi) R2 = .74 (.0115) (.049) Where: Yi = cups of coffee consumed by the ith person per day Xi = price of a cup of coffee in dollars ln( ) = natural log of ( ) *Standard errors are reported in parentheses Construct a 95% confidence interval for the slope coefficient in each model. What is this measure telling us? How will consistency in your OLS estimation affect your confidence intervals?

Solution

to calculate confidence level, no. of samples is required which is not provided in the question.

as the standard deviation is less for model B so it will be more consistent as compared to other Model A.