Question

roctice 1. The least squares estimated equation for demand is R 0.719 0.1973 1.044 P, +0.0033 (0.2702) (0.834) (0.0012) where P stands for Price, I for income. The Durbin-Watson statistic is 1.0212 (p-value of 0.0003). With k and dy 1.650 LM 2.0277 (p-value 0.053) 4 and T-30 we have d 1.214 30 we have a,-1.21 a. Is price is a relevant variable for explaining the demand?

could you please show the steps of the solution for my HW. I am struggling to understand the concept

Answer 1

Here twe hove 40 cheek he paite 0 R31 1.25 lto hence-do-not-Rejat oud