The following two models were estimated to analyze the demand for chickenaround
Mzumbe university campus.
I. Qc = 43.310 – 15.298Pc – 9.86Pb + 39.8Pf + 1.87Y.
(3.05) (45.467) (13.44) (20.245) (0.154)
R-square= 0.98
II.
Qc = -17.288 + 61.138Pc + 2.046Y.
(1.92) (22.8) (0.077)
R-square = 0.99
Where Qc = quantity of chicken demanded in 2012.
Pc = price of chicken.
Pb = price of beef.
Pf = price of fish.
Y = income.
The variances of Prices of beef and fish are respectively 180.49 and 409.87, and their
covariance is 112.54. Figures in parenthesis are t-ratios.
Required:
i) Are the individual partial slope coefficients statistically significant?
ii) Do the prices of chicken, beef and fish and income simultaneously influence
demand for chicken?
iii) It was stipulated that the prices of beef and fish are the same. Do you agree with
this statement, why?
iv) Do the prices of beef and fish (jointly) influence quantity of chicken demand?