a) Interpret the coefficient of ln (AREA) and establish a 90 percent confidence interval for 2.

b) Interpret the value of R2

c) Test the overall significance.

d) Using a 5% level of significance, test the hypothesis that the elasticity of

production with respect to labor is equal to 0.3 against the alternative that it

is greater than 0.3.

e) Given (2, 3) = 0.003117 and using a 1% level of significance, test

the hypothesis that the elasticity of production with respect to land is equal

to the elasticity of production with respect to labor.

Consider the following model for 36 rice farmers: In(PRODDi = B1 + B2 In(AREA)i + B3 In(LABOR)i + B4In(FERT)i + ui = where PROD AREA LABOR FERT production of rice (tonnes) area of land planted (hectares) labor (days hired) fertilizer (kilograms) EVIEWS Output from estimating this equation is partially given below: Dependent Variable: LNPROD Method: Least Squares Sample 0 36 Variable Coefficient Std. Error t-Statistic LNAREA LNLABOR LNFERT -1.546786 0.361736 0.432848 0.209502 0.255654 0.063968 0.066883 0.038265 -6.050321 5.654966 6.471762 5.474979 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood 0.847871 Mean dependent var 1.541307 0.846559 S.D. dependent var 0.871600 0.341419 Akaike info criterion 0.699888 40.56536 Schwarz criterion 0.743792 -119.1802 Hannan-Quinn criter. 0.717360