Raya University

College of Business and Economics

Department of Economics
Econometrics for Management Group Assignment for Management students (Extension)
Due Date for Submission: November 29/2023G.c
Value: 30%
1. The following table shows the relationship between wheat production and fertilizer
utilization. Wheat production is a dependent variable and fertilizer utilization is an
independent variable.
Wheat P. (WP)
40 44 46 48 52 58 60 68 74 80
(in quintal)
Fertilizer U. (FU)
20 30 40 50 60 70 70 75 75 80
(in kilo gram)
Number of observations = 10
Having the above data for the variables, answer the following questions:
a) Estimate the parameter estimates using statistical software. (Hint: use STATA).
b) Test the overall significance of the model.
c) Test the significance of the estimates at 5% level of significance using p-value.
d) Write the estimated model and interpret the coefficients.
2. Given the following regression result

Yˆ  261.09  0.2453X i
Se (31.327) ( )
t ( ) (16.616)
R 2  0.9388; n  15

Where the numbers in brackets are the respective standard error and t-calculated values of the
parameter estimates, and ‘n’ refers to the sample size.
a) Fill in the missing numbers in brackets
b) Test the significance of the parameter estimates using standard error test
c) Test the statistical significance of X at 5% level of significance (use the t-test)
d) Construct a 95% confidence interval for X
e) Interpret the value of R2
3. Suppose that the following regression result is estimated demand from a sample of 12
respondents.

Where X1 i s p r i c e o f t h e p r o d u c t , X2 i s the income of consumers, X3 is the preferences

of consumers and Y is demand for a particular product, and the standard errors are in
parenthesis.
a) Interpret the intercept and slope estimates.
b) Test the statistical significance of price of the product at 5% significance level using s.e.t.
c) Test the statistical significance of the income of consumers at 5% significance level using
t –test.
d) Establish 95% confidence interval for the coefficient o f preferences of consumers a n d
interpret the result.