1. Estimate the following equation by OLS using ordinary least squares: 01tttpq= ββε where and . ln()ttpP= ln(Q)ttq= 2. What is your estimate of the elasticity of demand? Your estimate is positive, s

Department of Ag and Resource Economics UC Davis

Name:

ARE 106 Answer Sheet for Homework 3

Spring 2020

Please write or type your answers to each question on the appropriate line. Each of the 11 parts of questions is worth two points. You will get a zero if you do not attach your computer output to this sheet.

Question 1

1) b0: :

b1: :

2) Elasticity:

3) b0: :

b1: :

4) Confidence Interval:

5) Null Hypothesis: Alt. Hypothesis:

Statistic: Critical Value: Result:

6) b0: :

b1: :

7) Attach printout of plot. Describe trend:

8) b0: :

b1: :

b2: :

9) b0: :

b1: :

b2: :

Autocorrelation test: Null Hypothesis: Alt. Hypothesis:

Statistic: Critical Value: Result:

10) Elasticity:

Interpret:

11) Assumption:

Free points are given to anyone who completes the homework including attaching computer output.