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Only answer part f please fQuestion 2 Suppose you are consulting for Exxon Mobil that want to invest on new gas station. You ran the
Only answer part f please
\fQuestion 2 Suppose you are consulting for Exxon Mobil that want to invest on new gas station. You ran the following regression: Sages.- =60 +51Traffiq + 7.- (1) where i = 1, ..., 100 are a set of gas stations picked at random within the US; Salesi are the gas sales (in 1000 of Gallons) in station 1'; and Tm f f 110,; is the traic volume (in 1000 of cars) faced by station 1'. Let B.) = 0.15 and 31 = 0.25. The standard errors are 1 and 0.01 reSpectively. (a) What is the economic interpretation of 5'1? (b) Does [30 have a realistic economic interpretation? ((1) Can you reject the hypothesis that the intercept is equal to zero at 95% level? What is the economic interpretation of this test (and of the result)? No.The t-stat for the hypothesis g = 0 is 70.15. Since |t|Step by Step Solution
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