Is the following statement True False or Uncertain You will

Is the following statement True, False or Uncertain. You will need to justify your answer.

In a regression study of electricity demand the price response was found to be insignificantly different from zero. Therefore price is not an important determinant of electricity consumption.

Solution

If the price response was found to be statistically insignificantly different from zero, it means that the price is not an important determinant of electricity consumption. Hence, the statement is true. If the price response would have been statistically different, then we could have rejected the hypothesis that impact of price is zero but now we cannot reject that possibility.