Solution-Testing for a shift in the intercept and slope

Testing for a shift in the intercept and slope

Reference no: EM13891725

Table gives the quantity of milk (in thousands of quarts) supplied by a firm per month Q at various prices P over a 14-month period. The firm faced a strike in some of its plants during the fifth, sixth, and seventh months. Run a regression of Q on P (a) testing only for a shift in the intercept during periods of strike and nonstrike and (b) testing for a shift in the intercept and slope.

Table Quantity Supplied of Milk (in Thousands of Quarts) at Various Prices

Month	1	2	3	4	5	6	7	8	9	10	11	12	13	14
Q	98	100	103	105	80	87	94	113	116	118	121	123	126	128
P	0.79	0.80	0.82	0.82	0.93	0.95	0.96	0.88	0.88	0.90	0.93	0.94	0.96	0.97

Reference no: EM13891725

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Testing for a shift in the intercept and slope

Reference no: EM13891725

Reference no: EM13891725

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