1. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields:= 16.907 + 0.322k₁ + 2.777l₁R² = 0.915 DW = 2.032 RSS=0.461 Use a = 5%Var ß=0.1660700.031857 0.216639-0.857446 -0.057229 4.939971/where : fitted values of naturals logaritrhms of output (output express in 1000 tons);k₁: natural logaritrhms of capital output (output express in 1000 tons)l: natural logaritrhms of labour (labour is in hours)RSS: residual sum of squarest: firm indexVar ß: variance - covariance matrix of estimatesa. Evaluate the statistical significance of the coefficients.

In this case, Cobb-Douglas production function is given. So it is a nonlinear production function.…

1. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: 16.907 + 0.322k₁ + 2.777l R2 = 0.915 DW = 2.032 RSS=0.461 Use a = 5% Var = B 0.166070 0.031857 0.216639 -0.857446 -0.057229 4.939971/ where : fitted values of naturals logaritrhms of output (output express in 1000 tons); k: natural logaritrhms of capital output (output express in 1000 tons) l: natural logaritrhms of labour (labour is in hours) RSS: residual sum of squares t: firm index Var ß: variance - covariance matrix of estimates a. Evaluate the statistical significance of the coefficients.

1. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: 16.907 + 0.322k₁ + 2.777l R2 = 0.915 DW = 2.032 RSS=0.461 Use a = 5% Var = B 0.166070 0.031857 0.216639 -0.857446 -0.057229 4.939971/ where : fitted values of naturals logaritrhms of output (output express in 1000 tons); k: natural logaritrhms of capital output (output express in 1000 tons) l: natural logaritrhms of labour (labour is in hours) RSS: residual sum of squares t: firm index Var ß: variance - covariance matrix of estimates a. Evaluate the statistical significance of the coefficients.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 3E

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Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
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