14. Consider the following cost function where C denotes cost and Q denotes output.

Assumet hat var(ey,): o2Qtt. We usea subscriprt becauseth e observationasr e time-series data. They are stored in the file cloth.dat.

Cr, : Br -t BzQr, + \zQi, -t \qQl, + et,

(a) Find generalizedle ast squarese stimateso f 9r, Bz,8 3,a nd Ba.

(b) Test the hypothesis Br : F+ : 0.

(c) What cany ou saya boutt he natureo f the averagec ostf unction if the hypothesis in

(b) is true?

(d) Under what assumption about the error term would it be more appropriate to estimate the average cost function than the total cost function?