Is the price elasticity of demand for cars statistically significant at 10% significant level? Explain. The following regression result obtained from the data of 30 countries in 2016:C = 3.98+0.53P+0.23Yse=(0.75) (0.12) (0.20)where C= car consumption, per yearP= price of a carY= real disposable incomeR? = 0.9218

Given: n = 30 C = 3.98 + 0.53 P + 0.23 Y R square = 0.9218 Level of significance = 0.10

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Is the price elasticity of demand for cars statistically significant at 10% significant level? Explain.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.7: Exponential And Logarithmic Models

Problem 19TI: Does a linear, exponential, or logarithmic model best fit the data in Table 2? Find the model.

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Concept explainers

Correlation

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.

Question

Is the price elasticity of demand for cars statistically significant at 10% significant level? Explain.

The following regression result obtained from the data of 30 countries in 2016:
C = 3.98+0.53P+0.23Y
se=(0.75) (0.12) (0.20)
where C= car consumption, per year
P= price of a car
Y= real disposable income
R? = 0.9218

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