Let the non-linear multiple regression equation be given by ????1 ????2 ????i i 0 1i 2i Y = ???? X X e , where Yi is the ith value of the output variable Y, X1i is the ith value of the input variable X1 (labour), X2i is the ith value of the input variable X2

(capital) , and ???? is the random error term. Given that

Answer the following questions:
(i) Interpret the estimated values of ????1 and ????2 . Is the function an increasing or decreasing return to scale? Why?
(ii) Looking at the results, what can you say about the model?
(iii) Find, the 95% confidence interval for ????1 and ????2 , and comment on your results.
(iv) Test the null hypothesis 0 j H : ???? ???? 0, ( j =1, 2) against a suitable alternative hypothesis.
(v) Test the null hypothesis 0 1 2 H : ???? = ???? against a suitable alternative hypothesis.

(vi) Obtain an extra sum of squares due to the above null hypotheses.

In(B)=-1.652, 0.34,, B = 0.846,, R2 = 0.995,, and n = 20, SE (In(,))=0.606,, SE(B)=0.186,, and SE(B)=0.0934.