Problem 1: Consider the following estimated demand function for chicken for a household in Fullerton, California over a period of 25 months. Q, -56.09- 0.19P, + 0.03PP SE=(29.18) (0.07) (0.019) R' - 0.81 and R- = 0.805 Number of observations = 25 Here, O, is the quantity demanded for chicken (in pound), P, is the price of chicken (in $), PP is the price of pork (in $). Suppose someone claims that the price of chicken and the price of pork together have no effect on the quantity demanded for chicken. (a) Formulate the F test to provide evidence against the claim. (Hint: Formulate the Null and the Alterative hypotheses, and then calculate the value of the F statistic. You can then arrive at a decision by comparing the critical value of F with the calculated value of F.) Explain the results of the F statistics. (10) (b) What kind of specification bias one would commit by omitting the price of pork from the regression function? Explain. (5) (c) Do you think that there is a specification bias in the above model of the demand function for chicken? Explain. (10) (d) Give an example of over-specified and under-specified regression model relating to this chicken demand function