To study the per capita consumption of chicken in the united states, you are giv

Question

To study the per capita consumption of chicken in the united states, you are given the data on the following variables

Y : per capital consumption of chickens in pounds

X1 : disposable income per capital in pounds

X2 : retail price of chicken per pound, in cents

X3 : retail price of pork per pound, in cents

X4 : retail price of beef per pound, in cents

From microeconomic theory, it is known that the demand for a commodity generally depends on the income of the consumer, the price of the commodity, and the prices of substitute or complementary commodities.

In view of these considerations, a multiple regression model is estimated and the following table shows the results.

261.24

24.9

Find all statistically significant variables at the significance level of 5%.

intercept, disposable income, and price of chicken

Intercept and price of chicken

intercept, disposable income, price of chicken, and price of pork

Intercpet, price of chicken, and price of pork

all coefficients

Coefficients Standard Errors Intercept

261.24

124.4 Disposable income -131.79 57.3 Price of chicken -32.24 12.4 Price of pork 42.33

24.9

Price of beef 44.98 34.6

Explanation / Answer

Here,

z = Bn / s(Bn)

Thus,

z(intercept) = 261.24/124.4 = 2.1
z(dispo) = -131.79/57.3 = -2.3
z(chic) = -32.24/12.4 = -2.6
z(pork) = 42.33/24.9 = 1.7
z(beef) = 44.98/34.6 = 1.3

As for alpha = 0.05, zcrit = +/-1.96.

Hence, those |z| scores above 1.96 are significant.

Hence,

OPTION A:   
intercept, disposable income, and price of chicken [ANSWER]

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