19. Suppose Q is related to L and K in the following nonlinear way: Q = aLbK c a. How well does this nonlinear model fit the data? b. Write the estimated equation in either the log-linear form or the nonlinear way. c. What is the estimated elasticity of L? Of K?
19. Suppose Q is related to L and K in the following nonlinear way: Q = aLbK c a. How well does this nonlinear model fit the data? b. Write the estimated equation in either the log-linear form or the nonlinear way. c. What is the estimated elasticity of L? Of K?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
19. Suppose Q is related to L and K in the following nonlinear way:
Q = aLbK c
a. How well does this nonlinear model fit the data?
b. Write the estimated equation in either the log-linear form or the nonlinear way.
c. What is the estimated elasticity of L? Of K?
Transcribed Image Text:DEPENDENT VARIABLE: Q
OBSERVATIONS: 123
VARIABLE
INTERCEPT
L
K
R-SQUARE
0.7547
PARAMETER
ESTIMATE
5.5215
0.650
0.350
F-RATIO
184.56
STANDARD
ERROR
0.9750
0.2950
0.1450
P-VALUE ON F
0.00001
T-RATIO
5.66
2.20
2.41
P-VALUE
0.0001
0.0295
0.0173
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