Which of the following possible regression results concerning the elasticity
of long-run output with respect to the saving rate would provide the best
evidence that differences in saving rates are not important to cross-country
income differences?
(1) A point estimate of 5 with a standard error of \(2 ;(2)\) a point estimate
of 0.1 with a standard error of \(0.01 ;(3)\) a point estimate of 0.001 with a
standard er ror of \(5 ;(4)\) a point estimate of -2 with a standard error of \(5
.\) Explain your answer. (Hint: See the discussion of confidence intervals
versus \(t \text { -statistics in Section } 3.6 .)\)
