Master of Business Administration Econ 511; Spring 2022 Dr. Said Al-shaikh A new Saudi producing breads and pastries using modern techniques is interested in developing a production function for its products. The data from 15 outlets were collected and presented in the next table. Table: Sale(SROO Labor(SRO Outlet 0 00) Capital(SROOO) Log Sale Log Labor log Capital 657.3 162.3 280 2.817764 2.210319 2.447158 935.9 214.4 542.5 2.971229 2.331225 2.7344 O A W N - 1110.7 186.4 721.5 3.045597 2.270446 2.858236 1200.9 245.8 1167.7 3.079507 2.390582 3.067331 1052.7 211.4 811.8 3.022305 2.325105 2.909449 6 3406 690.6 4558 3.532245 2.839227 3.658774 2427.9 452.8 3069.9 3.385231 2.655906 3.487124 4257.5 714.2 5585 3.629155 2.85382 3.747023 1625.2 320.5 1618.8 3.210907 2.505828 3.209193 10 1272.1 253.2 1562.1 3. 104521 2.403464 3. 193709 11 1004.5 236.4 662 3.00195 2.373647 2.820858 12 598.9 140.7 875.4 2.777354 2.148294 2.942207 13 853.1 145 1697 2.931 2.161368 3.229682 14 1165.6 240.3 1078.8 3.06655 2.380754 3.032941 15 1917.6 536.7 2109.3 3.282758 2.729732 3.324138 Average 1565.7 316.7 1756 Based on the above data, estimate the production function using OLS model by Excel, and then prepare your report through answering the following questions. 1) Write the function in log linear form? 2) Test whether the coefficients of labour and capital are statistically significant? 3 ) Test whether the independent variables in the regression equation are significant in explaining sales of this company 4) What is the explanatory power of the model? 5) What type of return to scale in this production function, explain? 6) Explain what the coefficients mean? Make sure you attach the regression Excel printout to your report upon submittal