3. Regression: Input return to Production (16 marks) A market analyst has recently gathered a dataset about the NZ dairy industry regarding the stocking rate (i.e., the number of cows per hectare of land), and the use of effluent, as well as milksolids production. (1) Please use the data (excel file named "dairy production") and regression techniques to estimate the relationship between log(milksolids) and log(stockingrate)and log( effluent) and report the key estimation results. (4 marks) (2) Please interpret the estimated coefficients of log(stockingrate)andlog(effluent), respectively, regarding both the economic and statistical significance. (4 marks) (3) Use the excel regression results to write down the Cobb-Douglas production function of milksolids production. Do you find an increasing scale of production here? Simply explain why. (4 marks) (4) Use the excel regression results to predict the estimated milksolids production and visualise it in a graph. 3. Regression: Input return to Production (16 marks) A market analyst has recently gathered a dataset about the NZ dairy industry regarding the stocking rate (i.e., the number of cows per hectare of land), and the use of effluent, as well as milksolids production. (1) Please use the data (excel file named "dairy production") and regression techniques to estimate the relationship between log(milksolids) and log(stockingrate)and log( effluent) and report the key estimation results. (4 marks) (2) Please interpret the estimated coefficients of log(stockingrate)andlog(effluent), respectively, regarding both the economic and statistical significance. (4 marks) (3) Use the excel regression results to write down the Cobb-Douglas production function of milksolids production. Do you find an increasing scale of production here? Simply explain why. (4 marks) (4) Use the excel regression results to predict the estimated milksolids production and visualise it in a graph