6. Consider the problem of estimating a production function that expresses the relationship between the level of output of a commodity and the level of input of a factor of production. Assume that you have the production data given in the following table: Table 1: A Sample of Observations on poultry Feed input and Meat output Output y 0.58 1.10 1.20 Input x 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1.30 1.95 2.55 2.60 2.90 3.45 3.50 3.60 4.10 4.35 4.40 4.50 (a) Assume that the data can be described by the simple linear regression model y = B₁ + B₂x + e and that all the assumptions hold. Use the least squares principle estimate b₁ and b₂. You may use a calculator for this question. (b) Give an economic interpretation to each of the estimated parameters. (c) Use the results of part (a) to plot the estimated production function.
6. Consider the problem of estimating a production function that expresses the relationship between the level of output of a commodity and the level of input of a factor of production. Assume that you have the production data given in the following table: Table 1: A Sample of Observations on poultry Feed input and Meat output Output y 0.58 1.10 1.20 Input x 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1.30 1.95 2.55 2.60 2.90 3.45 3.50 3.60 4.10 4.35 4.40 4.50 (a) Assume that the data can be described by the simple linear regression model y = B₁ + B₂x + e and that all the assumptions hold. Use the least squares principle estimate b₁ and b₂. You may use a calculator for this question. (b) Give an economic interpretation to each of the estimated parameters. (c) Use the results of part (a) to plot the estimated production function.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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Please show the work of how to answer part a), b), and c).
Transcribed Image Text:6. Consider the problem of estimating a production function that expresses the
relationship between the level of output of a commodity and the level of input of a factor
of production. Assume that you have the production data given in the following table:
Table 1: A Sample of Observations on poultry Feed input and Meat output
Output y
0.58
1.10
1.20
Input x
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1.30
1.95
2.55
2.60
2.90
3.45
3.50
3.60
4.10
4.35
4.40
4.50
(a) Assume that the data can be described by the simple linear regression model
y = B₁ + B₂x + e and that all the assumptions hold. Use the least squares principle
estimate b₁ and b2. You may use a calculator for this question.
(b) Give an economic interpretation to each of the estimated parameters.
(c) Use the results of part (a) to plot the estimated production function.
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