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420Hw08_6_7_ab - 6.7 An economist is interested in the...

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Unformatted text preview: 6.7 An economist is interested in the demand for California fresh Bartlett pears.T Data are collected on the variables: Y is the weighted-average season’s price of California fresh Bartletts on seven auction markets (dollars per box), X 1 is the interstate shipment of all California pears during California Bartlett shipping season (thousands of tons), and X2 is the Oregon and Washington shipment of all varieties of pears during California’s Bartlett season (thousands of tons) for the years 1930—1940. The data are given below. Year Y X1 X2 1930 2.31 120 52 1931 2.61 84 23 1932 1.94 66 20 1933 2.30 52 25 1934 2.53 72 17 1935 2.35 53 33 1936 2.33 68 40 1937 2.45 80 36 1938 1.93 89 40 1939 2.53 67 36 1940 2.33 68 44 Consider the model, K:BO+BIX|+BZXQ+€(3 i=1327-"911 where 8,- ~ N(0, 02). TThis problem is adapted from data published originally by S. H005 and S. W. Shear in their paper, “Relation between Auction Prices and SUpplies of California Fresh Bartlett Pears,” Hilgardia, 14, (5), California Experiment Station, 1942. (a) Obtain the least squares estimates [3. A (‘0) Compute the fitted values Y and the residuals 6 = Y —Y. ...
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