1. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields:= 16.907 + 0.322k₁ + 2.777l₁R² = 0.915 DW = 2.032 RSS=0.461 Use a = 5%Var ß=0.1660700.031857 0.216639-0.857446 -0.057229 4.939971/where : fitted values of naturals logaritrhms of output (output express in 1000 tons);k₁: natural logaritrhms of capital output (output express in 1000 tons)l: natural logaritrhms of labour (labour is in hours)RSS: residual sum of squarest: firm indexVar ß: variance - covariance matrix of estimatesa. Evaluate the statistical significance of the coefficients.

In this case, Cobb-Douglas production function is given. So it is a nonlinear production function.…

1. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: 16.907 + 0.322k₁ + 2.777l R2 = 0.915 DW = 2.032 RSS=0.461 Use a = 5% Var = B 0.166070 0.031857 0.216639 -0.857446 -0.057229 4.939971/ where : fitted values of naturals logaritrhms of output (output express in 1000 tons); k: natural logaritrhms of capital output (output express in 1000 tons) l: natural logaritrhms of labour (labour is in hours) RSS: residual sum of squares t: firm index Var ß: variance - covariance matrix of estimates a. Evaluate the statistical significance of the coefficients.

1. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: 16.907 + 0.322k₁ + 2.777l R2 = 0.915 DW = 2.032 RSS=0.461 Use a = 5% Var = B 0.166070 0.031857 0.216639 -0.857446 -0.057229 4.939971/ where : fitted values of naturals logaritrhms of output (output express in 1000 tons); k: natural logaritrhms of capital output (output express in 1000 tons) l: natural logaritrhms of labour (labour is in hours) RSS: residual sum of squares t: firm index Var ß: variance - covariance matrix of estimates a. Evaluate the statistical significance of the coefficients.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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21. The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: 4. 16.907+0.322k; +2.777li R2 = 0.915 DW = 2.032 RSS = 0.461 Use α = 5% 4.939971 Var ẞ=0.216639 0.031857 -0.857446 -0.057229 0.166070/ where fitted values of naturals logarithms of output (output express in 1000 tons); ki: natural logarithms of capital output (output express in 1000 tons) l: natural logarithms of labour (labour is in hours) RSS: residual sum of squares 1: firm index Var ẞ: variance-covariance matrix of estimates Evaluate the statistical significance of the coefficients.
Question 6 The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: = a. 16.907 + 0.322k; + 2.777lį R² = 0.915 DW = 2.032 RSS = 0.461 Use a = 5% Var ß = 0.166070 0.031857 0.216639 -0.857446 -0.057229 4.939971/ where : fitted values of naturals logaritrhms of output (output express in 1000 tons); ki: natural logaritrhms of capital output (output express in 1000 tons) li: natural logaritrhms of labour (labour is in hours) RSS: residual sum of squares 1: firm index Var ß: variance covariance matrix of estimates Evaluate the statistical significance of the coefficients. Page 4 of 12 b. A regression on the original regressors, q² and a constant term yields the following statistics: R² = 0.296041 F = 1.177507 coeff of ² has a t-statistic of 2.876 (i) With this information, which test can you implement to deal with the problem omitted variables and why? (ii) Implement the test as stated in b(i) and interpret the results. (iii) What is (are) the…
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