Interpret the values of the beta coefficients estimated

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Reference no: EM131444809

Question: Table below gives the output in tons Q, the labour inputs in hours, L, and the capital input in machine hours K, of 14 firms in the beef processing industry.

Firms	1	2	3	4	5	6	7	8	9	10	11	12	13	14
Q	240	400	110	530	590	470	450	160	290	490	350	550	560	430
L	1480	1660	1150	1790	1880	1860	1940	1240	1240	1850	1570	1700	2000	1850
K	410	450	380	430	480	450	490	395	430	460	435	470	480	440

(i) Fit the data to the Cobb-Douglas production function: ?? = ??0????1????2???? (Hint. Transform the data and have a double-log equation).

(ii) Test the hypothesis for labour and Capital? Are these factors significantly influencing quantity of beef produced? How can you justify.

(iii) Discuss the criteria would you use to evaluate the overall model performance?

(iv) Interpret the values of the beta coefficients estimated.

Reference no: EM131444809

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