The elasticity of demand for gasoline has been estimated to be ?2.0, and the standard error is 0.25. The t-statistic for the estimated elasticity of demand for gasoline is:
A. 0.5, indicating a statistically significant elasticity estimate at the 95 percent confidence level.
B. 8, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
C. ?8, indicating a statistically significant elasticity estimate at the 95 percent confidence level.
D. ?0.5, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
Answer: C
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