Question: Starting with the data from Problem 6 and the data on the price of a related commodity for the years 1986-2005 given below, we estimated the regression for the quantity demanded of a commodity on the price of the commodity, consumer income, and the price of the related commodity, and we obtained the following results.

Data from Problem 6

Data from Problem 15

Qx= 121.86-9.50Px +0.04Y-2.21Pz

(-5.12) (2.18) (-0.68)

R2=0.9633 F=167.33 D-W=2.38

(b) evaluate the above regression results…evaluate the above regression results in terms of the signs of the coefficients, the statistical significance of the coefficients and the explanatory power of the regression. The number in parentheses below the estimated slope coefficients refer to the estimated t values. The rule of thumb for testing the significance of the coefficients is if the absolute t value is greater than 2, the coefficient is significant, which means the coefficient is significantly different from zero

(c) Are X and Z complementary or substitute?

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