The following table shows the estimated equation of demand for ugali in restaurants around mzumbe area based on 69 observation.Figure in brackets are t-ratios
Qu=4.34
(2.91)
-0.37lnPu+0.27lnPr+0.18lnM
(3.78) (1.59) (4.81)
Where
Pu =price of ugali per plate;Pr=Price of rice per plate; M=per capita income
Given ESS=19650.5 and TSS=43979.1
Required.
a) determine which variables are significantly different from zero at the 5% level and interpret their coefficients
b) compute and interpret R-squared.
1 answer