Suppose the economist in question 26 is interested in estimating the price and income elasticity of demand

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Suppose the economist in question 26 is interested in estimating the price and income elasticity of demand for movie tickets. He can do this by taking the natural logarithms of QT, PT, and GNP and reestimating the multiple regression.

Using the data from question 27, estimate the price and income elasticity for movie tickets and interpret your results.

Question 27

Suppose the economist of question 26 collects the following data.image text in transcribed

(a) Estimate the demand for movie tickets.

(b) Do the coefficients carry the correct signs?

(c) If you were going to use a t-test to test the significance of b1 and b2, should you use a one-tailed or a two-tailed test?

(d) Use a t-test to test the significance of b1 and b2.

Question 26

An economist at the National Academy of Movie Theater Owners wants to estimate the demand for movie tickets. He chooses to estimate the equation.image text in transcribed

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Related Book For  book-img-for-question

Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

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