Question: 6. 10 Use the sample data for beer consumption in the file beer.dat to (a) Estimate the coefficients of the demand relation (6.14) using only

6. 10 Use the sample data for beer consumption in the file beer.dat to

(a) Estimate the coefficients of the demand relation (6.14) using only sample information. Compare and contrast these results to the restricted coefficient resultsg iven in (6.19).

(b) Does collinearity appear to be a problem?

(c) Test the validity of the restriction that implies demand will not change if prices and income go up in the same proportion.

(d) Use model (6. 19) to construct a 95Va prediction interval for Q when PB : 3.00. PL : 10, PR : 2.00, and 1 : 50,000. (Hint: Constuct the interval for ln(p) and then take antilogs.)

(e) Repeatp art

(d) using the unconstrainedm odel from part (a). Comment

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