Homework Help is Here – Start Your Trial Now!
Math
Statistics
SECTION B Answer one question 1. An economist believes that the amount of beef consumed (Y) in tons in a year in Kenya depends on the price of beef x₁ in dollars per pound, the price of pork x2 in dollars per pound, the price of chicken x3 in dollars per pound, and the income per household x4 in thousands of dollars. The following sample regression was obtained through least squares, using 30 annual observations: log y = -0.024 0.529 log x₁ + 0.217 log x₂ + 0.193 log x3 (0.168) (0.103) (0.106) R² = 0.683 + 0.416 log x4 (.163) The numbers in parentheses under the coefficients are the estimated coefficient standard errors. a) Evaluate the overall fit of the estimated regression b) Determine at 5% level which (if any) of the estimated coefficients are statistically different from zero. c) Test the null hypothesis that the four variables logx₁, logx2, logx3, logx4 do not, as a set, have any linear influence on log y. d) Interpret the signs and magnitudes of the estimated coefficients e) The economist is also concerned that, over the years, the increasing awareness of the effects of heavy red-meat consumption on health may have influenced the demand for beef. If this is indeed the case, identify the econometric issue/problem this raises about the estimated regression? What is the consequence of the problem for the estimated coefficients? 2. Consider the following model that relates the percentage of a household's budget spent on alcohol WALC to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household NK. WALC=B₁ + B₂ ln(TOTEXP) + ß3NK + ß4AGE + e This model was estimated using 1200 observations. An incomplete version of this output is provided in Table

SECTION B Answer one question 1. An economist believes that the amount of beef consumed (Y) in tons in a year in Kenya depends on the price of beef x₁ in dollars per pound, the price of pork x2 in dollars per pound, the price of chicken x3 in dollars per pound, and the income per household x4 in thousands of dollars. The following sample regression was obtained through least squares, using 30 annual observations: log y = -0.024 0.529 log x₁ + 0.217 log x₂ + 0.193 log x3 (0.168) (0.103) (0.106) R² = 0.683 + 0.416 log x4 (.163) The numbers in parentheses under the coefficients are the estimated coefficient standard errors. a) Evaluate the overall fit of the estimated regression b) Determine at 5% level which (if any) of the estimated coefficients are statistically different from zero. c) Test the null hypothesis that the four variables logx₁, logx2, logx3, logx4 do not, as a set, have any linear influence on log y. d) Interpret the signs and magnitudes of the estimated coefficients e) The economist is also concerned that, over the years, the increasing awareness of the effects of heavy red-meat consumption on health may have influenced the demand for beef. If this is indeed the case, identify the econometric issue/problem this raises about the estimated regression? What is the consequence of the problem for the estimated coefficients? 2. Consider the following model that relates the percentage of a household's budget spent on alcohol WALC to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household NK. WALC=B₁ + B₂ ln(TOTEXP) + ß3NK + ß4AGE + e This model was estimated using 1200 observations. An incomplete version of this output is provided in Table

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
SECTION B Answer one question 1. An economist believes that the amount of beef consumed (Y) in tons in a year in Kenya depends on the price of beef x₁ in dollars per pound, the price of pork x2 in dollars per pound, the price of chicken x3 in dollars per pound, and the income per household x4 in thousands of dollars. The following sample regression was obtained through least squares, using 30 annual observations: log y = -0.024 0.529 log x₁ + 0.217 log x₂ + 0.193 log x3 (0.168) (0.103) (0.106) R² = 0.683 + 0.416 log x4 (.163) The numbers in parentheses under the coefficients are the estimated coefficient standard errors. a) Evaluate the overall fit of the estimated regression b) Determine at 5% level which (if any) of the estimated coefficients are statistically different from zero. c) Test the null hypothesis that the four variables logx₁, logx2, logx3, logx4 do not, as a set, have any linear influence on log y. d) Interpret the signs and magnitudes of the estimated coefficients e) The economist is also concerned that, over the years, the increasing awareness of the effects of heavy red-meat consumption on health may have influenced the demand for beef. If this is indeed the case, identify the econometric issue/problem this raises about the estimated regression? What is the consequence of the problem for the estimated coefficients? 2. Consider the following model that relates the percentage of a household’s budget spent on alcohol WALC to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household NK. WALC =B1 + B₂ ln(TOTEXP) + ß3NK + ß4AGE + e This model was estimated using 1200 observations. An incomplete version of this output is provided in Table
Transcribed Image Text:SECTION B Answer one question 1. An economist believes that the amount of beef consumed (Y) in tons in a year in Kenya depends on the price of beef x₁ in dollars per pound, the price of pork x2 in dollars per pound, the price of chicken x3 in dollars per pound, and the income per household x4 in thousands of dollars. The following sample regression was obtained through least squares, using 30 annual observations: log y = -0.024 0.529 log x₁ + 0.217 log x₂ + 0.193 log x3 (0.168) (0.103) (0.106) R² = 0.683 + 0.416 log x4 (.163) The numbers in parentheses under the coefficients are the estimated coefficient standard errors. a) Evaluate the overall fit of the estimated regression b) Determine at 5% level which (if any) of the estimated coefficients are statistically different from zero. c) Test the null hypothesis that the four variables logx₁, logx2, logx3, logx4 do not, as a set, have any linear influence on log y. d) Interpret the signs and magnitudes of the estimated coefficients e) The economist is also concerned that, over the years, the increasing awareness of the effects of heavy red-meat consumption on health may have influenced the demand for beef. If this is indeed the case, identify the econometric issue/problem this raises about the estimated regression? What is the consequence of the problem for the estimated coefficients? 2. Consider the following model that relates the percentage of a household’s budget spent on alcohol WALC to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household NK. WALC =B1 + B₂ ln(TOTEXP) + ß3NK + ß4AGE + e This model was estimated using 1200 observations. An incomplete version of this output is provided in Table
Expert Solution
steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS