Q3. (30 points) Below is an estimated equation for Cigarette Sales. Based on the estimated parameters etc., answer the following questions: LnCig = 2.296 -0.76LnPc - 1.12LnIn - 0.09CigTax -0.007 CigAd T-Calc: (1.10). (-2.12). (-2.91). (-1.18). (-2.32) Where: Cig is for Cigarette Sales (million packs per day); Pe is the price per pack; In is per capita income; CigTax is Sales tax per pack; CigAd is the Advertising expenditure in millions o dollars. In stands for Natural Log of the variables. T-Table value (95% level of confidence and 135 degrees of freedom) is 1.96 R-Square: 0.78 a) Based on these estimated parameter values what can you say about them? b) Can you test a Hypothesis that Tax on Cigarette sales has No impact on the Sale of Cigarettes? c) Does Advertising have any impact on Cigarette Sale? d) If governments increase Cig Tax by 10%, some analysts say, Cigarette Sales will Definitely go down by 10%. Do you agree? If NOT WHY NOT? e) How would you use the same framework to distinguish Cigarette consumption (Sales) between male and female? Discuss this. 4. Name some of the problems one may run into using a Multiple Linear Regression. Discuss at least one of them (10 points) Q3. (30 points) Below is an estimated equation for Cigarette Sales. Based on the estimated parameters etc., answer the following questions: LnCig = 2.296 -0.76LnPc - 1.12LnIn - 0.09CigTax -0.007 CigAd T-Calc: (1.10). (-2.12). (-2.91). (-1.18). (-2.32) Where: Cig is for Cigarette Sales (million packs per day); Pe is the price per pack; In is per capita income; CigTax is Sales tax per pack; CigAd is the Advertising expenditure in millions o dollars. In stands for Natural Log of the variables. T-Table value (95% level of confidence and 135 degrees of freedom) is 1.96 R-Square: 0.78 a) Based on these estimated parameter values what can you say about them? b) Can you test a Hypothesis that Tax on Cigarette sales has No impact on the Sale of Cigarettes? c) Does Advertising have any impact on Cigarette Sale? d) If governments increase Cig Tax by 10%, some analysts say, Cigarette Sales will Definitely go down by 10%. Do you agree? If NOT WHY NOT? e) How would you use the same framework to distinguish Cigarette consumption (Sales) between male and female? Discuss this. 4. Name some of the problems one may run into using a Multiple Linear Regression. Discuss at least one of them (10 points)