In an effort to reduce gasoline consumption and curb carbon emissions, policymakers have proposed raising gasoline taxes.
Question:
a. Write a model for Yt as a function of Xt that proposes a linear relationship between gasoline consumption and after-tax gasoline price.
b. Add dummy variables for months to the model, part a. Use December as the base level.
c. What statistical test would you conduct to determine whether mean gasoline consumption varies from month to month? Give the null hypothesis for the test.
d. Assume that monthly data from January 2002 to March 2012 (n = 123 months) were used to fit the model, part b. In terms of the β's of the model, what is the forecast of gasoline consumption in January 2017?
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Related Book For
Statistics For Business And Economics
ISBN: 9780134506593
13th Edition
Authors: James T. McClave, P. George Benson, Terry Sincich
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