question 2,3,4

The following table shows the price (X) and quantity demanded (Y) for Buta tablet soap in five (5) shops in the hypothetical town of Bal Using the data in the table above: a. Estimate the demand function; Yi=0+1Xi+ui. Write your estimated regression [7 marks]. b. Interpret the slope coefficients you have obtained in a.[2 marks] c. Calculate the coefficient of determination (r2) and interpret it. [3 marks] d. Calculate the standard error of the slope coefficient [3 marks] QUESTION THREE Using observations for a period 1990 to 2020 , RM estimated the import function for cars in Zambia and obtained the following estimated import function: Where Y= imports (number of cars imported), X1= Gross National Product (GNP) in Kwacha, = price of imported goods, t= time in years and values in the parentheses are standard errors. a. Interpret all the partial regression coefficients in the estimated model above [6 marks]. b. Construct the 95% confidence interval for coefficient on GNP and test the null hypothesis that GNP has no effect on imports against the hypothesis that GNP has an effect on imports (Use the 2-t rule of thumb). What is your conclusion? [3 marks] c. Calculate the R2 and interpret its value [3 marks]. d. Test the overall significance of the model at 5% level of significance (F-critical value = 2.76) [3 marks]. QUESTION FOUR: Given the two variable population regression function (PRF): Y=0+1X+u a. Derive the estimator for 1[7 marks] b. State and briefly explain three (3) Classical Linear Regression Model assumptions relating to the error term [6 marks] c. Prove that var(Y)=2[2 marks ] The following table shows the price (X) and quantity demanded (Y) for Buta tablet soap in five (5) shops in the hypothetical town of Bal Using the data in the table above: a. Estimate the demand function; Yi=0+1Xi+ui. Write your estimated regression [7 marks]. b. Interpret the slope coefficients you have obtained in a.[2 marks] c. Calculate the coefficient of determination (r2) and interpret it. [3 marks] d. Calculate the standard error of the slope coefficient [3 marks] QUESTION THREE Using observations for a period 1990 to 2020 , RM estimated the import function for cars in Zambia and obtained the following estimated import function: Where Y= imports (number of cars imported), X1= Gross National Product (GNP) in Kwacha, = price of imported goods, t= time in years and values in the parentheses are standard errors. a. Interpret all the partial regression coefficients in the estimated model above [6 marks]. b. Construct the 95% confidence interval for coefficient on GNP and test the null hypothesis that GNP has no effect on imports against the hypothesis that GNP has an effect on imports (Use the 2-t rule of thumb). What is your conclusion? [3 marks] c. Calculate the R2 and interpret its value [3 marks]. d. Test the overall significance of the model at 5% level of significance (F-critical value = 2.76) [3 marks]. QUESTION FOUR: Given the two variable population regression function (PRF): Y=0+1X+u a. Derive the estimator for 1[7 marks] b. State and briefly explain three (3) Classical Linear Regression Model assumptions relating to the error term [6 marks] c. Prove that var(Y)=2[2 marks ]