Lobster value. Here’s a regression model relating the logValue of the annual Maine lobster catch to the number of licensed lobster Fishers:

a) The number of licensed lobster fishers has fluctuated over the years between roughly 5000 and 10,000. Recently the number has been just over 7000. But licenses are in demand (and tightly restricted). What does this model predict the value of the catch would be in a year if there were 10,000 licensed fishers? (Take care to interpret the coefficient correctly and to compute the inverse of the log transformation.)

b) Interpret the slope coefficient. Do more fishers cause a higher valued harvest? Suggest alternative explanations.

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Dependent variable is: LogValue R-squared = 18.9% s=0.4306 with 56 Variable R-squared (adjusted) = 17.3% 254 degrees of freedom SE(Coeff) t-ratio P-value Coeff Intercept 6.43619 0.3138 20.5 0.0001 Fishers 1.56021e-4 0.0000 3.54 0.0008