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### Lab4

Course: AED ECON 501, Fall 2009
School: Ohio State
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Word Count: 383

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501 AEDE WINTER 2003 LAB 4 - MORE FUN WITH REGRESSION Your Name: ____________________________________________ Remember to read each question carefully, answer each question fully, and use two decimal places throughout. 1. Use OLS to estimate the following demand function for chicken: Qc = bo + b1Pc + b2I + b3Pb + b4Pp a) Write out the regression equation in proper form, using the coefficients and intercept that...

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501 AEDE WINTER 2003 LAB 4 - MORE FUN WITH REGRESSION Your Name: ____________________________________________ Remember to read each question carefully, answer each question fully, and use two decimal places throughout. 1. Use OLS to estimate the following demand function for chicken: Qc = bo + b1Pc + b2I + b3Pb + b4Pp a) Write out the regression equation in proper form, using the coefficients and intercept that you estimated in your OLS model. b) Based on your economic intuition, do any of your estimated coefficients have unexpected signs? c) State the R2 and F-statistic. Based on this information, is this model an effective one for estimating the demand for chicken? d) Now look at the t-statistics and corresponding p-values for each of the model's coefficients. Recall that a t-statistic >|2| (and a corresponding p-value of less than 5% or 0.05) permits rejection of the hypothesis that the slope coefficient is equal to zero with 95% confidence. Based on this information, are there any slope coefficients for particular variables that we can't be confident are statistically different from zero? 1 2. Use OLS to estimate a second model of chicken demand: Qc = bo + b1Pc + b2I + b4Pt a) Write out the regression in equation proper form, using the coefficients and intercept that you estimated in your OLS model. b) Based on your economic intuition, do any of your estimated coefficients have unexpected signs? c) State the R2 and F-statistic. Based on this information, is this model an effective one for estimating the demand for chicken? d) Now look at the t-statistics and corresponding p-values for each of the model's coefficients. Recall that a t-statistic >|2| (and a corresponding p-value of less than 5% or 0.05) permits rejection of the hypothesis that the slope coefficient is equal to zero with 95% confidence. Based on this information, are there any slope coefficients for particular variables that we can't be confident are statisti...

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