Ordinary Least Squares Is Used to Estimate a Linear Relationship

Multiple Choice

Ordinary least squares is used to estimate a linear relationship between a firm's total revenue per week (in $1,000s) and the average percentage discount from list price allowed to customers by salespersons. A 95% confidence interval on the slope is calculated from the regression output. The interval ranges from 1.05 to 2.38. Based on this result, the researcher

A) can conclude that the slope is significantly different from zero at the 5% level of significance.
B) can be 95% confident that the effect of a 1% increase in the average price discount will increase weekly total revenue by between $1,050 and $2,380.
C) has one chance in twenty of incorrectly concluding that the slope is within the estimated confidence interval.
D) All of the above are correct.