question 21

QUESTION 21 An econometrician has estimated the inverse demand relation P = a + bQ + e and found that a = 400. b = - 2.75. Oa=8, and of =0.75. The R-squared is 0.88. (Note: On and Of are the standard deviations of a and .) a. Compute the t-statistics for estimated coefficients a and b b. Determine which (if any) of the estimated coefficients are statistically different from zero. c. What does the R-square in this regression indicate? Does the regression fit the data well? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px X2 X2 SIT The ABC V Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers 1080 F8 FIC ScrEx 56 6