3. This model describes manufacturing production in the United States LnQ, = 0.1 +.0.75*InL, +0.25* InK, +.02*T s.e. 0.4 0.15 .05 0.1 r-square = .90, n=54 Standard error of the regression = 0.05 Q= output in year t L=labor hours in year t K= capital hours in year t T= time count in years Please answer the following questions (20 points, 4 points each) a. Explain the estimated parameters (discuss their signs and magnitudes) b. What do the standard error values of the parameters mean? c. Is each explanatory variable statistically significant at the 5% cutoff? Use a one- tail test. State the degrees of freedom d. What does r-square mean? Hint: remember this is a log-log model e. What does the standard error of the regression mean? Hint: this is a log-log model 3. This model describes manufacturing production in the United States LnQ, = 0.1 +.0.75*InL, +0.25* InK, +.02*T s.e. 0.4 0.15 .05 0.1 r-square = .90, n=54 Standard error of the regression = 0.05 Q= output in year t L=labor hours in year t K= capital hours in year t T= time count in years Please answer the following questions (20 points, 4 points each) a. Explain the estimated parameters (discuss their signs and magnitudes) b. What do the standard error values of the parameters mean? c. Is each explanatory variable statistically significant at the 5% cutoff? Use a one- tail test. State the degrees of freedom d. What does r-square mean? Hint: remember this is a log-log model e. What does the standard error of the regression mean? Hint: this is a log-log model