Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

From the data for 4 6 states in the United States for 1 9 9 2 , it is obtained the following regression results: InC

From the data for 46 states in the United States for 1992, it is obtained the following regression results:
InC=4.30-134lnP+0.17ln
5cR2=(0.91)(0.32),(0.20)
income per capita.
a. What is the elasticity of demand for cigarcttes will respect to price? Is it alatidically significaut? Is it statistically bigger than 1 at 0.05 significance level?
b. Compute e 95% interval cstimate for the price clasticity of deMand.
c. Discuss the overall significance of the model with necesary F ratio calculations at onf significance level.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Econometrics

Authors: R Carter Hill, William E Griffiths

3rd Edition

0471723606, 9780471723608

More Books

Students also viewed these Economics questions