Question: Consider the following regression equation for the US (Standard errors in parentheses): P t =4.00-.01PRP t + .03PRB t + .20YD t (.005) (.02) (.04)

Consider the following regression equation for the US (Standard errors in parentheses):

Pt=4.00-.01PRPt + .03PRBt + .20YDt

(.005) (.02) (.04)

Rbar2=.98 n=29

where pt= per capita pounds of pork consumed in time period t

PRPt =the price of pork in time period t

PRBt =the price of beef in time period t

YDt =per capita disposable income in time period t

a. Hypothesize signs and specify the appropriate null and alt. hypotheses for the coefficients of each of these variables (one sided test)

b. Test your hypotheses using the t-test at a 5% level of significance


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