4. Suppose that you want to estimate the price elasticity of quantity demanded forbeef using log(Q*e ) = a + ß, log(Phed ) +u (1), where Q is the quantitydemanded of beef and Pee is price of beef. You try to decide whether you shouldinclude log price of chicken and log price of pork in the regression as well, i.e.,whether to estimatebeeflog(Qbeer ) = a + ß, log(Pheef ) + B, log(PPork) + ß, log(Pmcken ) + u (2) instead. Which ofthe following is correct?a) Choose (2) if its R squared is higher.b) Do an F test to test the joint significance of the estimated P2 and Þ3. If youreject the null, choose (2).c) Do an F test to test the joint significance of the estimated B2 and P3. If you failto reject the null, choose (2).d) Both a) and b) are correct.

The R-squared value implies the co-efficient of determination. It measures whether our regression…

4. Suppose that you want to estimate the price elasticity of quantity demanded for = a + B, log(Phe)+u (1),where Q is the quantity log(Qhe ): beef using demanded of beef and Pee is price of beef. You try to decide whether you should include log price of chicken and log price of pork in the regression as well, i.e., whether to estimate log(Qbeef) = a + B, log(Pheef ) + ß, log(PPork ) + ß, log(Phcken ) + u (2)instead. Which of the following is correct? a) Choose (2) if its R squared is higher. b) Do an F test to test the joint significance of the estimated P2 and B3. If you reject the null, choose (2). c) Do an F test to test the joint significance of the estimated B2 and Þ3. If you fai to reject the null, choose (2). d) Both a) and b) are correct.

4. Suppose that you want to estimate the price elasticity of quantity demanded for = a + B, log(Phe)+u (1),where Q is the quantity log(Qhe ): beef using demanded of beef and Pee is price of beef. You try to decide whether you should include log price of chicken and log price of pork in the regression as well, i.e., whether to estimate log(Qbeef) = a + B, log(Pheef ) + ß, log(PPork ) + ß, log(Phcken ) + u (2)instead. Which of the following is correct? a) Choose (2) if its R squared is higher. b) Do an F test to test the joint significance of the estimated P2 and B3. If you reject the null, choose (2). c) Do an F test to test the joint significance of the estimated B2 and Þ3. If you fai to reject the null, choose (2). d) Both a) and b) are correct.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.8: Fitting Exponential Models To Data

Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...

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