Suppose we had another focus group sample, ran a regression on that sample, and obtained the same coefficient on price but with a standard error 10 times as large. The standard error would be 327.78 and the new t-statistic would be -1.26. The price coefficient wouldn’t be statistically significant because the p-value is higher than 0.05 (5%).Why is statistical significance of the price coefficient important in the second example?
Demand for iTunes Description (First Example) The standard error of this estimated coefficient is 32.78 The standard error= estimated coefficient/ t-statistic SE= -413/-12.6 (Second example) Suppose we had another focus group sample, ran a regression on that sample, and obtained the same coefficient on price but with a standard error 10 times as large. The […]