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April 5th, 2013, 08:59 AM   #1
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Impact of changing Beta on confidence interval

Let's assume, that I got confidence interval for Beta in linear regression (B1,B2). Now I want to evaluate confidence interval for modified Beta. The new beta would be computed with following formula: new_beta=Beta/(1-x). X is constant. Will new confidence interval be equal to : [B1/(1-x),B2/(1-x)] ? If not, then I don't know how to evaluate standard error, since I don't have historical data for new_beta.

Thanks in advance and apologise if my question is too silly for you.
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April 5th, 2013, 11:47 AM   #2
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Re: Impact of changing Beta on confidence interval

Or would it be better, to create new interval with new_beta +/- t *D(new_beta) / (1-x).
Simple Adding and subtracting t*D(new_beta) without dividing by 1-x will not be correct?
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