Explain the various functional forms of regression model. From the imaginary data for 46 Districts in UP related to the year 2020, the following regression results are given: Log C= 4.30-1.34 log P +0.17 log Y Se= (0.91) (0.32) (0.20) R² = 0.27 Where C= consumption of Cigarette packs per year P= real price per pack Y= real disposable income per capita. i. What is the elasticity of demand for cigarettes with respect to price? ii. What is the income elasticity of demand for cigarettes? Is it statistically significant? iii. How would you retrieve R² from the adjusted R² given above.
Introduction Regression models are a core component of econometrics and statistics, used to explain the relationship between a dependent variable and one or more independent variables. There are several functional forms of regression models, each suited for different types of data behavior and analysis objectives. This response also solves the numerical portion based on the […]