Question 3 We have a time series dataset from the US which includes the following variables for the period 1960- 1999: • Y₁: Per capita chicken consumption (in pounds) in year t. . PC: The price of chicken (in cents per pound) in year t.

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Question 3
We have a time series dataset from the US which includes the following variables for the period 1960-
1999:
Yt: Per capita chicken consumption (in pounds) in year t.
PC: The price of chicken (in cents per pound) in year t.
PB: The price of beef (in cents per pound) in year t.
YD: Per capita disposable income (in hundreds of dollars) in year t.
YD2t: YD+ squared, i.e. YD2, = YD²
We estimate by OLS the following regression model:
Table 2
■
.
Dependent variable: Y
Number of observations: 40
Variable
intercept
PC
PB
YD
YD2
R-squared
F statistic
(p-value)
Coefficient
27.6
-0.61
0.09
0.20
-0.0001
0.99
8.74
(0.006)
Standard Error
1.58
0.16
0.04
0.01
0.00005
Transcribed Image Text:Question 3 We have a time series dataset from the US which includes the following variables for the period 1960- 1999: Yt: Per capita chicken consumption (in pounds) in year t. PC: The price of chicken (in cents per pound) in year t. PB: The price of beef (in cents per pound) in year t. YD: Per capita disposable income (in hundreds of dollars) in year t. YD2t: YD+ squared, i.e. YD2, = YD² We estimate by OLS the following regression model: Table 2 ■ . Dependent variable: Y Number of observations: 40 Variable intercept PC PB YD YD2 R-squared F statistic (p-value) Coefficient 27.6 -0.61 0.09 0.20 -0.0001 0.99 8.74 (0.006) Standard Error 1.58 0.16 0.04 0.01 0.00005
O
Test the significance of the coefficient of PB. Use a 10% significance level.
Transcribed Image Text:O Test the significance of the coefficient of PB. Use a 10% significance level.
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