Consider the Following Regression Equation for the United States (Standard

question 1

Essay

Consider the following regression equation for the United States (standard errors in parentheses):
$$\begin{array} { c } \hat { \mathrm { P } } _ { \mathrm { t } } = 4.00 - 0.010 \mathrm { PRP } _ { \mathrm { t } } + 0.030 \mathrm { PRB } _ { \mathrm { t } } + 0.20 \mathrm { YD } _ { \mathrm { t } } \\( 0.005 ) \quad ( 0.020 ) \quad ( 0.04 ) \\\overline { \mathrm { R } } ^ { 2 } = 0.98 \quad \mathrm { n } = 29\end{array}$$ where: P_t =per capita pounds of pork consumed in time period t
PRP_t =the price of pork in time period t
PRB_t =the price of beef in time period t
YD_t =per capita disposable income in time period t
(a) Hypothesize signs and specify the appropriate null and alternative hypotheses for the coefficients of each of these variables.
(b) State your decision rules and then test your hypotheses on the above results using the t-test at a 5% level of significance.
(c) If you could add one variable to the regression, what variable would you add? Why?

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Definitions:

Rotator Cuff

A group of muscles and tendons surrounding the shoulder joint, providing stability and allowing a wide range of movements.

Nucleus Pulposus

The gel-like center of an intervertebral disc which helps absorb shock and provide flexibility to the spine.

Medial Epicondyle

A bony protrusion on the inner side of the humerus where certain tendons of the forearm muscles attach.

Glenohumeral Joint

The ball-and-socket joint of the shoulder, allowing for a wide range of arm movements.