Question: A factory operator hypothesized that his unit output costs y
A factory operator hypothesized that his unit output costs (y) depend on wage rate (x1), other input costs (x2), overhead costs (x3), and advertising expenditures (x4). A series of 24 monthly observations was obtained, and a least squares estimate of the model yielded the following results:
The figures in parentheses below the estimated coefficients are their estimated standard errors. What can you conclude from these results?
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