Q2 [30 MARKS]. A researcher is interested in the demand for holiday travel and has estimated the following models for annual expenditure on holiday travel using data from a cross-sectional study of spending patterns in a representative sample of the UK households in 2015. InEXP_Ti=ao+ailnP_T;+ a2lnP_Others; + 3lnYi + 4Age; + as Adults; + 6Childreni + &i w_T; =Bo+ilnP_T+ BlnP_Others; + 3lnY; + 4Age; + 5Adults;+ B6Children; +i (1) (2) where EXP_T; is the expenditure on holiday travel of household i; w_T; is the budget share for holiday travel of household i; P_T; is the price of holiday travel household i pays; P_Others; is the price of other goods household i pays; Y; is total income of household i; Age; is the age of head of household i; Adults; is the number of adults in household i; Children; is the number of children in household i; &; and ; are error terms. In indicates the natural logarithm. i is the household identifier. The researcher gets the following estimates: (1) InEXP_T (2) W_T Coefficient Standard Coefficient Standard error error InP_T -0.424 0.205 -0.285 0.195 InP Others 0.236 0.417 0.021 0.006 In Y 1.236 0.537 0.445 0.221 Age -0.271 0.112 -0.262 0.108 Adults -0.925 0.210 -0.285 0.195 Children -0.312 0.041 -0.021 0.006 R 0.128 0.245 N 1328 1300