An agricultural economist believes that the amount of beef consumed (y) in tons in a year in
Question:
The numbers in parentheses under the coefficients are the estimated coefficient standard errors.
a. Interpret the coefficient on log x1.
b. Interpret the coefficient on log x2.
c. Test, at the 1% significance level, the null hypothesis that the coefficient on log x4 in the population regression is 0 against the alternative that it is positive.
d. Test the null hypothesis that the four variables (log x1, log x2, log x3, log x4) do not, as a set, have any linear influence on log y.
e. The economist is also concerned that, over the years, the increasing awareness of the effects of heavy red-meat consumption on health may have influenced the demand for beef. If this is indeed the case, how would this influence your view of the original estimated regression?
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne