The forecast for the following quarter is 0.155 + 0.240(0.240) + 0.168(0.260) = 0.256. Since the standard error is 0.049 and the corresponding t-statistic is 2, we can be 95% confident that the gross margin will be within 0.256 – 2 × (0.049) and 0.256 + 2 × (0.049) or 0.158 to 0.354 |
