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(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) : R = 0.8853 (se) %3D (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.

(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) : R = 0.8853 (se) %3D (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.

College Algebra
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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(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) ; R? = 0.8853 (se) (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.
Transcribed Image Text:(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) ; R? = 0.8853 (se) (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.
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