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results of the estimated regression

See the attached file.

You will need to use the PS2 EXCEL spreadsheet (attached) to answer the following questions. You are required to do the analysis for the chicken demand market in the United States between 1960 and 1999.

According to the theory, you know that the quantity of demand for the chicken, Qt, will be affected by the price of the chicken itself, PCt, the price of the close substitute good, i.e. beef, PBt, and average annual personal income, YDt.

Where Qt = per capita chicken consumption (in pounds) in year t
PCt = the price of chicken (in cents per pound) in year t
PBt = the price of beef (in cents per pound) in year t
YDt = U.S. per capita disposable income (in hundreds of dollars) in year t

Now, you decide to estimate your model as followings:
Qt = b1+b2PCt +et

1. Report your results of the estimated regression in the form of an equation. Write your results listing the standard errors in parentheses under the numerical estimates of each estimator.

2. What is the estimated value of b2 and what is the economic meaning of this value?

3. What is the predicted value of the average quantity demanded for chicken with the mean value of each of the independent variables?

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Solution Summary

Results of the estimated regression are clearly depicted in the solution.