At the 5% level of significance, which variables are statistically significant? If the price of cement per yard increases by 10, what will happen to the estimated quantity of cement demanded? What happens if it will increase by 20%?
At the 5% level of significance, which variables are statistically significant? If the price of cement per yard increases by 10, what will happen to the estimated quantity of cement demanded? What happens if it will increase by 20%?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
- At the 5% level of significance, which variables are statistically significant?
- If the price of cement per yard increases by 10, what will happen to the estimated quantity of cement demanded? What happens if it will increase by 20%?
Transcribed Image Text:Given: The ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand
for its cement using a demand function in the linear form:
Q = f( P, M, PR)
where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country's tax revenues per capita, and PR = the price
of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding
months. The results are presented below:
DEPENDENT VARIABLE
Qc
R-
SQUARE
F-RATIO
P-VALUE ON F
OBSERVATIONS
64
0.8093
84.872
0.0001
PARAMETER
STANDARD ERROR
T-
P-VALUE
VARIABLE
ESTIMATE
RATIO
INTERCEPT
8.20
4.01
2.04
0.0461
PC
-3.54
1.64
-2.16
0.0357
M
0.64287
0.19
3.38
0.0014
PA
0.7854
0.38
2.07
0.0439
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