Use your results from question 27 to compute R² and R^-2. Also use an F-test to test the joint significance of the regression.

Question 27

Suppose the economist of question 26 collects the following data.

(a) Estimate the demand for movie tickets.

(b) Do the coefficients carry the correct signs?

(c) If you were going to use a t-test to test the significance of b₁ and b₂, should you use a one-tailed or a two-tailed test?

(d) Use a t-test to test the significance of b₁ and b₂.

Question 26

An economist at the National Academy of Movie Theater Owners wants to estimate the demand for movie tickets. He chooses to estimate the equation.

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Year 1986 1987 1988 1989 1990 1991 QT 1,000 1,100 1,200 1,300 1,400 1,500 PT $7.00 7.25 6.75 6.50 6.50 6.25 GNP 1,000 1,250 1,175 1,800 2,000 2,250