An Analyst Examines the Effect That Various Variables Have on Crop

question 53

Essay

An analyst examines the effect that various variables have on crop yield.He estimates y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε.where y is the average yield in bushels per acre,x₁ is the amount of summer rainfall,x₂ is the average daily use in machine hours of tractors on the farm,and x₃ is the amount of fertilizer used per acre.The results of the regression are as follows: a.At the 10% significance level,are the explanatory variables jointly significant in explaining crop yield? Explain.
b.At the 10% significance level,is fertilizer significant in explaining crop yield? Explain.
c.At the 10% significance level,can you conclude that the slope coefficient attached to rainfall differs from 9? Explain.

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Definitions:

Inflation

The rate at which the cost of goods and services across the board escalates, leading to a fall in the buying power of currency.

Living Standards

The volume of capital, pleasantries, commodities, and indispensable resources available to a defined economic group or territorial area.

Market Economy

is an economic system in which supply and demand from consumers direct the production of goods and services.

Socially Desirable Outcome

An economic or social condition that benefits the majority of the community, considering factors like efficiency, equity, and the welfare of all participants.