Consider the following regression equation for the United States (standard errors in parentheses): Â Â Â Â Â Â Â Â Â Â Â where: PtÂ Â Â Â Â = per...

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Economics

Consider the following regression equation for the United States(standard errors in parentheses):
Â Â Â Â Â Â Â Â Â Â Â where: P_tÂ Â Â Â Â = per capitapounds of pork consumed in time period t
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â PRP_t = the price of pork in time period t
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â PRB_t = the price of beef in time period t
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â YD_tÂ Â = per capita disposable income in timeperiod t
(a) Hypothesize signs and specify the appropriate null andalternative hypotheses for the coefficients of each of thesevariables.
(b) State your decision rules and then test your hypotheses onthe above results using the t-test at a 5% level ofsignificance.
(c) If you could add one variable to the regression, whatvariable would you add? Why?

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