Explore BrainMass
Share

Explore BrainMass

    Econometrics - Linearizing an Equation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Demand 4,5,3
    Price 1,2,2
    Income 3,5,3

    You suspect that demand is given by

    y=exp(b1x1+b2x2)
    Transform this equation to linear form

    a. Estimate b1 and b2
    b. Find r^2

    © BrainMass Inc. brainmass.com October 9, 2019, 9:25 pm ad1c9bdddf
    https://brainmass.com/economics/econometric-models/econometrics-demand-price-income-shown-184505

    Solution Preview

    The solution file is attached.

    demand 4,5,3
    price 1,2,2
    income 3,5,3

    you suspect that demand is given by

    y=exp(b1x1+b2x2)
    transform this ...

    Solution Summary

    Linearizing the demand function - Regression and ANOVA table

    $2.19