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:

Tend and Befriend

A theory that suggests in times of stress, individuals, particularly females, will seek social alliances and support, rather than isolating themselves or fighting.

Stressful Situations

Scenarios that cause psychological or physical tension or strain.

Social Networks

Platforms or structures made up of individuals or organizations that are connected through various social relationships, like friendships or professional ties.

Communal Orientation

An approach or attitude towards social interactions where individuals prioritize the needs and welfare of their community or group over their personal gains.