Production function for agricultural sector of a country is specified as the foll log Y=B1 + B2 log K+ 33 log L+u. where Y represents wheat output, K capital stock and L employment (labor). The model is estimated using annual data over 1980-2020 (n=41) periods. The results are reported below. p-values are given in squared parentheses. log Y= 4.17+0.67 log K+ 0.35 log L p-value [0.015] [0.18] R² = 0.81 1.a) Test if each slope coefficient is significant individually (one by one) using the p-values in parentheses and interpret the results. (

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Chapter1: Making Economics Decisions
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1) Production function for agricultural sector of a country is specified as the following,
log Y=B1 + B2 log K+ ß3 log L+u.
where Y represents wheat output, K capital stock and L employment (labor). The model is estimated
using annual data over 1980-2020 (n=41) periods. The results are reported below. p-values are given in
squared parentheses.
loĝ Y = 4.17 +0.67 log K+ 0.35 log L
p-value
[0.015]
[0.18]
R² = 0.81
1.a) Test if each slope coefficient is significant individually (one by one) using the p-values in
parentheses and interpret the results. (
Transcribed Image Text:1) Production function for agricultural sector of a country is specified as the following, log Y=B1 + B2 log K+ ß3 log L+u. where Y represents wheat output, K capital stock and L employment (labor). The model is estimated using annual data over 1980-2020 (n=41) periods. The results are reported below. p-values are given in squared parentheses. loĝ Y = 4.17 +0.67 log K+ 0.35 log L p-value [0.015] [0.18] R² = 0.81 1.a) Test if each slope coefficient is significant individually (one by one) using the p-values in parentheses and interpret the results. (
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