In a study of the relationship between real aggregate consumption and prices in a specific country based on a time series of 104 observations, the following OLS regression function was obtained (standard errors in parentheses), C; = 13.74 + 0.24P, (0.35) R² = 0.12, (1) SER = 2.85, (0.05) where C; is logarithm of consumption and P, is logarithm of price. (a) Is the coefficient on P, statistically significant? (b) Compute the p-value for the test of significance of the coefficient on P. (c) Comment on the sign of the coefficient on P.
In a study of the relationship between real aggregate consumption and prices in a specific country based on a time series of 104 observations, the following OLS regression function was obtained (standard errors in parentheses), C; = 13.74 + 0.24P, (0.35) R² = 0.12, (1) SER = 2.85, (0.05) where C; is logarithm of consumption and P, is logarithm of price. (a) Is the coefficient on P, statistically significant? (b) Compute the p-value for the test of significance of the coefficient on P. (c) Comment on the sign of the coefficient on P.
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 1TI: Table 2 shows a recent graduate’s credit card balance each month after graduation. a. Use...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning