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[2 marks] 2. What are the independent variables?
[2 marks] 3. What does the R2 means? Use the result.
[2 marks] 4. What does the Fstatistics mean? Use the result.
[2 marks] 5. What does the tstatistics mean? Use the results.
[2 marks] 6. Using Model A, provide an economic interpretation for each of the coefficients.
[2 marks] 7. Using Model A, calculate the relevant elasticities when capital = RM20,000 and
labour = 800 mandays.
[2 marks] 8. Which is the better model: Model A or Model B? Why?
[2 marks] 5 BMME5103/SEPT 07F/KN 9. Using Model B, determine the relevant elasticities.
[2 marks] 10. Determine the return to scale. Is it decreasing, increasing or constant returning
to scale?
[2 marks] MODEL A
Variables Entered/Removed (b) Variables
Model
1 Variables Entered Removed Labour, Method
. Enter Capital(a) a All requested variables entered.
b Dependent Variable: Production Model Summary Std. Error of
Adjusted
Model
1 R
.9...
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 Spring '14
 Accounting

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