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Starting with the data from Problem 6 and the data on the price of a related commodity for the years

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

Year	Y	X1	X1
1986	72	$10	$2,000
1987	81	9	2,100
1988	90	10	2,210
1989	99	9	2305
1990	108	8	2407
1991	126	7	2500
1992	117	7	2610
1993	117	9	2698
1994	135	6	2801
1995	135	6	2921
1996	144	6	3,000
1997	180	4	3,099
1998	162	5	3,201
1999	171	4	3,308
2000	153	5	3,397
2001	180	4	3,501
2002	171	5	3,689
2003	180	4	3,800
2004	198	4	3,896
2005	189	4	3,989

Data from Problem 15

Year Pz($)	1986 14	1987 15	1988 15	1989 16	1990 17
Year Pz ($)	1991 18	1992 17	1993 18	1994 19	1995 20
Year Pz ($)	1996 20	1997 19	1998 21	1999 21	2000 22
Year Pz ($)	2001 23	2002 23	2003 24	2004 25	2005 25

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

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