Suppose that a researcher estimates a consumption function and obtains the following results: C=15+0.81Yd n=19 R2=0.99 (3.1) (18.7) where C=Consumption, Yd=disposable income, and numbers in the parenthesis are the ‘t-ratios’ a. Test the significant of Yd statistically using t-ratios b. Determine the estimated standard deviations of the parameter estimates

/in /by

Suppose that a researcher estimates a consumption function and obtains
the

following results:

C=15+0.81Yd n=19 R2=0.99

(3.1) (18.7)

where C=Consumption, Yd=disposable income, and numbers in the
parenthesis are the

‘t-ratios’

a. Test the significant of Yd statistically using t-ratios

b. Determine the estimated standard deviations of the parameter
estimates

You might also like
The Long-run production function is given by; Y = 180 L1.2 K1.8 Where, Y = Output (mt/day), L = Labour (hours/mt) K = Capita (Rs/mt) a) Calculate Marginal Product of Labour (MPL) and Marginal Product of Capital (MPK), if L=12 and K=20 b) Derive the equation for Isoquent and graphically show it by assuming L= 10, 15, 20 25 and 30. c) Determine factor intensity and returns to scale of this production function. d) Prove that the elasticity of labour is 1.2 and elasticity of capital is 1.8
Suppose that a firms out put is given by: q = αLK2 Where α is a productivity factor. i. Specify the marginal products of labour and capital. ii. If the cost function is C = wL + rK. Specify the quanitites of capital and Labour that minimize costs?
In a competitive market individual firms take as given a. the level of output they produce. b. the price they receive for their output. c. both the level of output they produce and the price they receive. d. neither the level of output they produce nor the price they receive.
Give brief but succent conceptual discussion on welfare theory and resource allocation.
Illustrate and explain the production possibility curve
What are some of the reasons that might motivate a corporate chief executive officer (CEO) not to try to maximise his shareholders’ wealth in relation to the firm’s activities?
ORTIA had to follow certain stages in the design of their services. Which one of the following is NOT one of these stages? 1 Screening process 2 Evaluation and improvement 3 Work measurement 4 Concept generation
Suppose that the total utility function of a consumer is given by TU(x,y) = 4xy+2 y and the prices of X and Y are 1 Birr and 2 Birr per unit, respectively. If the income of the consumer is 60 Birr and if he spends all of his income on the consumption of commodities of X and Y, Find the optimum amount of X and Y that the consumer will consume at equilibrium Find MRTSx,y . Draw the budget line What happens to the original budget line if the budget falls by 50%? What happens to the original budget line if the price of X doubles? What happens to the original budget line if the price of Y increases to 4?