Questions / Quant research, Probability & inference
A confidence interval crosses zero
An approximately normal estimator is 0.8 with standard error 0.3. Using 1.96 standard errors, what is the lower endpoint of its two-sided 95% confidence interval?
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Answer: 0.212 units
- The lower endpoint is 0.8 − 1.96 × 0.3 = 0.212.
Interview shortcut. Lower endpoint = estimate − 1.96 × SE.
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