Question

he delaor6 states ni ti Us r92, Hhe fellaturegerson nelts Loge s4.20-134 Log P+0.7 Log R047 ehesty aupho nganette paeks pryea P veal prcke per pae, a tel per apeta cadeIalpret the gehou elashinfus deaud fr etfes. Are Wat ok t p y abont t behavto

Answer 1

Foom the data for 46 states cith Us fes 1992 18aUlagi obtained the following Regnes ion Result: 4.30- 1.3 Lo9 pt o. 1 Se Co.20 Co.9i) Co.32) R2-a4 whese cciga tte censumphon Jacks pea yead P= real price pes pack Y-beal disposable incorne pes apita The elasticty of demand fos cigaoe tes ath xepet to Poice -1.34 Ho: 2+ 8 not stoatislicaly diffexentPem) Hi2f Bstatig tically difeaent fson . Let the des be d-o05 Test statistic C134-Do.32 -7.3125 t-catical -2.0)5368 pere tvalue not in the Cial valuej, so ce resect Ho Conelude that tis statstialy difedent Thuy we from 1. ghe elasticity ef demant f cigaetes ct th espect to inCome o:2+ is t stadisti cally difexent Poono CS Scannedwit stetsialy diReaent frem o. 0.17 CamScanner

Let the dafs be alpha o.05 Test statisic = 0.17-0.85 O.20 t-caitical vedue ± 2.015368 Hexe t-value is nt fn the cttcal values. So ae siect Ho Thus fsom o. aue Conclude that y statisthically different 2 REO.Y7 .e 44% af vaiaions in the vaoiable ci garatte cansunglfon can be explained by the ndepen dent varfab les pice and fncome