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(g) Now transform the data into logs and estimate the log- linear function. Please copy and paste your regression results from your Excel file. Using
(g) Now transform the data into logs and estimate the log- linear function. Please copy and paste your regression results from your Excel file. Using the estimated coefficients, write down the estimated demand function as it appears in (2). 4 h) What does the coefficient 1 measure? What does the magnitude of the estimated coefficient 1 indicate? (i) (1 point) You realized that the demand function (2) could be misspecified, since it omits other variables. Add the log of Pb and the log of A into the regression equation estimated in part (g) and re-estimate the equation. Please copy and paste your regression results from your Excel file. (j) Which model fits the data better, the one in part (g) or in part (i)? Hint: look at the adjusted R2
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