The following regression equation is estimated as a production function for q based on a sample size of 30 observations
In (Q)=1.37 + 0.632 in(Ki)+0.452 in(Li)+uhati
(0.257) (0.219)
R2=0.98 Cov(Bkhat,Bhat L)=0.055
And standard errors are in parenthesis,where bhatk and bhatl are capital and labour elsaticities with respect to output,respectively
a. Test the hypothesis that capital(K) AND Labour(L) elasticities of output are identical at 5% level of Significance
b. Test the hypothesis that there are constant returns to scale at 5% level of significance