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Consider the following demand function for beef in California. Q, =56.09 - 0.19 P, +0.03 P SE=(29.18) (0.07) (0.019) R-square=0.81 and Adjusted-Rsquare=0.805 Number of observations

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Consider the following demand function for beef in California. Q, =56.09 - 0.19 P, +0.03 P SE=(29.18) (0.07) (0.019) R-square=0.81 and Adjusted-Rsquare=0.805 Number of observations = 25 Here, O, is the quantity demanded for beef (in pound), P is the price of beef (in $), P.$ is the price of pork (in $). a. Interpret the coefficients of the price of beef and the price of pork. (10) b. Suppose, someone claims that the price of beef and the price of pork together have no effect on the quantity demanded for beef. Formulate the test to provide evidence against the claim. (Hint: Formulate the Null and the Alterative hypotheses, and then calculate the value of the F statistic. Then you can arrive at a decision by comparing the critical value of F with th calculated value of F.) Explain the results of the F statistic. (10) c. What are the criteria for a model to be under specified? Do you think the above model in this question is under specified? Explain your answer. (5) d. What are the criteria for a model to be over specified? Do you think the above model in this question is under specified? Explain your answer. (5) e. Using the above beef demand function, give an example of an over-specified model, that is, modify the model in such a way so that the model becomes an over-specified model

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