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3. (20 points) Consider the following computer output. n=100 observations, dependent variable is Quantity R-SQUARE=0.0551 SIGMAHAT=5.4474 SUM OF RESIDUALS SQUARED=??? VARIABLE ESTIMATED STANDARD T-RATIO NAME

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3. (20 points) Consider the following computer output. n=100 observations, dependent variable is Quantity R-SQUARE=0.0551 SIGMAHAT=5.4474 SUM OF RESIDUALS SQUARED=??? VARIABLE ESTIMATED STANDARD T-RATIO NAME COEFFICIENT ERROR 98 DF PRICE -0 . 86510 ? ? -2.3916 CONSTANT 6.3721 1 . 0068 6.3293 (a) Fill in the missing numbers (Sum of residuals squared, Standard Error on Price)(b) Interpret the coefficient on Price (Beta hat) (c) If you believe a good econometrician ran this regression, does this estimated result define a demand or a supply curve? (d) Construct a 95% confidence interval for beta hat.(e) Test the hypothesis at the 5% significance level (You may use the confidence interval approach or use 1.96 as the critical value) Ho : 32 =0. , against the alternative H1 : B2 # 0

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