The demand function below is estimated using the data generated by a randomized controlled trial: Lnq,-a+b'Lnp,+c Lnpytd Lnp;te where q. is the quantity demanded of the product of interest (X), p, is the price of the product of interest (X), py is the price of a substitute product (Y), and p, is the price of a complement product (Z). Also, e is the error term. The table below shows the 95% confidence interval estimation for parameters b, c, and d: Parameter Lower Limit of 95%CIE Upper Limit of 95%CIE
The demand function below is estimated using the data generated by a randomized controlled trial: Lnq,-a+b'Lnp,+c Lnpytd Lnp;te where q. is the quantity demanded of the product of interest (X), p, is the price of the product of interest (X), py is the price of a substitute product (Y), and p, is the price of a complement product (Z). Also, e is the error term. The table below shows the 95% confidence interval estimation for parameters b, c, and d: Parameter Lower Limit of 95%CIE Upper Limit of 95%CIE
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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Transcribed Image Text:The demand function below is estimated using the data generated by a randomized controlled trial:
Lng,-a+b'Lnp,+c'Lnpytd*Lnp;te
where q, is the quantity demanded of the product of interest (X), p, is the price of the product of interest (X), p, is the
price of a substitute product (Y), and p; is the price of a complement product (Z). Also, e is the error term. The table below
shows the 95% confidence interval estimation for parameters b, c, and d:
Upper Limit of 95%CIE
Lower Limit of 95%CIE
-0.052
Parameter
-0.031
-0.025
+0.045
-0.154
-0.075
Choose the correct statement.
O Given the estimation results, price of X, price of Y, and price of Z are among the significant determinants of demand for X.
O Given the estimation results, price of Y and price of Z are among the significant determinants of demand for X.
O Given the estimation results, none of the price measures are among the significant determinants of demand for X.
O Given the estimation results, price of X and price of Z are among the significant determinants of demand for X
Given the estimation results, price of X and price of Y are among the significant determinants of demand for X
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