Suppose that a researcher estimates a consumptions function and obtains the following results: 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

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Suppose that a researcher estimates a consumptions
function and obtains the following results:

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

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