Demand regression project econ 4570 data: elecdemanddata.xls under demand project data on d2l 1. using the data file above, run a linear regression of dependent variable: milkwh explanatory variables: pop, pkwh, pgas, income. which coefficients (including the constant) are statistically significant at the 10% level or better? which are not significant? how much of the variation in the dependent variable is explained by the estimated equation? is the equation as a whole statistically significant? at what level? 2. run another regression like that in 1 above, but leave out the explanatory variables that were not significant at the 10% level or better. are any coefficients not significant at the 10% level? how did the r-squared change from the regression in 1? how did the f statistic and its significance level change? in regression #2, are the signs (+ or -) of the estimated coefficients consistent with economic theory? explain. (hint: is the demand curve downward sloping? are the related goods complements or substitutes? does an increase in population increase demand?) for regression #2, what are the inverse demand equation and the marginal revenue equation derived from the estimated demand equation? write these out using numbers calculated from your regression output and the means of the variables listed below. attach copies of your regression output for 1 and 2 along with your answers. show your work on all calculations. you may cooperate or work in groups to run the regressions. groups may turn in one completed task identifying all students in the group. the regressions may be run in excel or the statistical package of your choice (minitab, etc.). means of regression variables milkwh 25,364 pop 5,756,577 pkwh 9.0 pgas 11.40 income 32,345

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Answer to Question1 The linear regression output for the given data file is below SUMMARY OUTPUT Regression Statistics Multiple R 0918064878 R Square ... View the full answer