WhereY=imports (number of cars imported),X1=Gross National Product (GNP) in Kwacha,=price of imported goods,t=time in years and values in the parentheses are standard errors. 

a. Interpret all the partial regression coefficients in the estimated model above. 

 

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Using observations for a period 1990 to 2020, RM estimated the import function for cars in Zambia and obtained the following estimated import function: InY= 10 + 9.1lnX₁ -0.34X2 -0.03t (-4.4) (0.01) se (2.2) (5.5) R² = 0.9 Using observations for a period 1990 to 2020, RM estimated the import function for cars in Zambia and obtained the following estimated import function: InY= 10 + 9.1lnX₁ -0.34X2 -0.03t (-4.4) (0.01) se (2.2) (5.5) R² = 0.9

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ANSWER a The import function for cars in Zambia can be represented by the following equation InY 10 91 InX1 034X2 003t where InY the value of imports ... View the full answer