The demand function for lumber products is thought to take the form P = AQb. Data were

Question:

The demand function for lumber products is thought to take the form P = AQ−b. Data were collected and displayed in the table below. One of your co-workers suggests a linear model regressing P on Q. Based on the anticipated function shown below, you suggest a doublelog model.

A. Using your preferred software estimate both models. Save the residuals.

B. Compare and contrast the results. What can you say about the elasticity of demand?

C. Plot the residuals. What can you conclude?

D. Can you compare the R2 values? Explain why or why not. image text in transcribed

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Introductory Regression Analysis With Computer Application For Business And Economics

ISBN: 9780415899338

1st Edition

Authors: Allen Webster

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Question Posted: Feb 27, 2024 03:05 AM

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The demand function for lumber products is thought to take the form P = AQb. Data were

Question:

Q 2 4 60 8 10 12 14 16 18 P 45.23 15.6 8.51 5.52 3.95 3 2.39 1.95 1.64 InQ 0.693147 1.386294 1.791759 2.079442 2.302585 2.484907 2.639057 2.772589 2.890372 InP 3.811761 2.747271 2.141242 1.708378 1.373716 1.098612 0.871293 0.667829 0.494696

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Introductory Regression Analysis With Computer Application For Business And Economics

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