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LOS 7.i: Calculate and interpret a confidence interval
for the predicted value of the dependent variable. MODULE 7.4: PREDICTING DEPENDENT VARIABLES & CONFIDENCE INTERVALS

CONFIDENCE INTERVALS FOR PREDICTED VALUES

Calculated similar to that of regression coefficients:

But how do we get s f?
(it is provided in exams, but if not,
use variance of the forecast):

We can be 95% confident that
ABC excess returns will be
between -3.4 and 21.6%