1. Suppose output (Q) is related to labor (L) and capital (K) in the following nonlinear way:Q = albKcWhen taking log to this equation, it is transformed into a linearLnQ = Ina + b In(L) + c Ln (K)One hundred twenty-three observations are used to obtain the following regression results:DependantVariable:Observations:VariableInterceptLKQ1235.5215Parameter StandardEstimateerror0.650R-square0.3500.75470.97500.29500.1450F-ratio184.56t-ratio5.662.202.41p-value on F0.00001p-value0.00010.02950.0173a. Write the regression equation based on the output either in the transformed linear form or the original non-linear form.

A mathematical depiction of an association between variables, known as the log-log linear form, uses…

1. Suppose output (Q) is related to labor (L) and capital (K) in the following nonlinear way: Q = albKc When taking log to this equation, it is transformed into a linear LnQ = Ina + b In(L) + c Ln (K) One hundred twenty-three observations are used to obtain the following regression results: Dependant Variable: Observations: Variable Intercept L K 123 5.5215 Parameter Standard Estimate error 0.650 R-square 0.350 0.7547 0.9750 0.2950 0.1450 F-ratio 184.56 t-ratio 5.66 2.20 2.41 p-value on F 0.00001 p-value 0.0001 0.0295 0.0173 a. Write the regression equation based on the output either in the transformed linear form or the original non-linear form.

1. Suppose output (Q) is related to labor (L) and capital (K) in the following nonlinear way: Q = albKc When taking log to this equation, it is transformed into a linear LnQ = Ina + b In(L) + c Ln (K) One hundred twenty-three observations are used to obtain the following regression results: Dependant Variable: Observations: Variable Intercept L K 123 5.5215 Parameter Standard Estimate error 0.650 R-square 0.350 0.7547 0.9750 0.2950 0.1450 F-ratio 184.56 t-ratio 5.66 2.20 2.41 p-value on F 0.00001 p-value 0.0001 0.0295 0.0173 a. Write the regression equation based on the output either in the transformed linear form or the original non-linear form.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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