An empirical study by Huang, Siegfried and Zardoshty3 estimated a demand function for coffee in the United States between 1961 and 1977, using quarterly time-series data. The results were: ln Qt 1⁄4 1:2789 0:1647 ð2:14Þ ln Pt þ 0:5115 ð1:23Þ ln Yt þ 0:1483 ð0:55Þ ln P0 t 0:0089 ð3:326Þ T 0:0961 ð3:74Þ D1 0:1570 ð6:03Þ D2 0:0097 ð0:37Þ D3 R2 1⁄4 0:80 where Q = pounds of coffee consumed per head P = the relative price of coffee per pound at 1967 prices Y = per capita personal disposable income (in $,000 at 1967 prices) P 0 = the relative price of tea per quarter pound at 1967 prices T= the trend factor, with T = 1 for 1961-I to T = 66 for 1977-II D1 = 1 for the first quarter D2 = 1 for the second quarter D3 = 1 for the third quarter Questions 1 Interpret the PED for coffee; does price significantly affect consumption? 2 Interpret the YED for coffee; does income significantly affect consumption? 3 Interpret the CED between tea and coffee; does the price of tea significantly affect the consumption of coffee? 4 Why do you think that advertising expenditure is omitted from the equation? 5 Interpret the trend factor. 6 Interpret the seasonal pattern in coffee consumption in the USA. 7 How well does the model fit the data?

Answers

Answer 1
Answer:

The estimated price elasticity of demand (PED) for coffee is -0.1647, which means that a 1% increase in the relative price of coffee leads to a 0.1647% decrease in the quantity demanded of coffee. .

The estimated income elasticity of demand (YED) for coffee is 0.5115, which means that a 1% increase in per capita personal disposable income leads to a 0.5115% increase in the quantity demanded of coffee.

How to explain the elasticity

The estimated cross-price elasticity of demand (CED) between tea and coffee is -0.0089, which means that a 1% increase in the relative price of tea leads to a 0.0089% decrease in the quantity demanded of coffee. The coefficient is small and statistically insignificant, suggesting that the price of tea does not have a significant effect on the consumption of coffee.

It is possible that advertising expenditure is omitted from the equation because it may be difficult to measure accurately or may not have a significant effect on coffee consumption. Alternatively, advertising may be captured in the error term of the equation.

The trend factor is included in the equation to capture the effect of time on coffee consumption that is not captured by the other variables in the equation. The coefficient on the trend factor is positive, indicating that coffee consumption has been increasing over time during the sample period.

The seasonal pattern in coffee consumption in the USA is captured by the dummy variables D1, D2, and D3, which take the value of 1 in the first, second, and third quarters, respectively, and 0 otherwise. The estimated coefficients on these variables suggest that coffee consumption is highest in the first quarter, lower in the second quarter, and lowest in the third quarter.

The R-squared value of 0.80 suggests that the model explains 80% of the variation in coffee consumption during the sample period. This is a relatively high R-squared value, indicating that the model fits the data well.

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When calculated correctly, the income approach and the expenditure approach shoulda. equal each other.
b. negate each other.
c. reveal a difference of 25%.
d. reveal a difference of 50%.

Answers

The answer is .A They should equal each other
 
Income approach and expenditure approach are just different methods to calculate gross domestic products ( one emphasizing on income and the other one emphasizing on expenditure) , and if Calculated properly, the result should be equal each other

How did the outsiders help Jews within the ghetto?

Answers

They helped supply them with food

To break a chemical bond particles need to collide with a certain amount of?

Answers

Answer:

To break a chemical bond, it is required that particles must have certain amount of energy so that when they can collide with each other due to this energy.

Explanation:

A number of restorative justice experts, including Gordon Bazemore, have suggested that restorative justice should be organized around the principle of:

Answers

Answer:

balance

Explanation:

Gordon Bazemore is a professor of Criminal Justice and is an avid speaker on the topic of Restorative Justice. According to my research on Bazemore's studies, I can say that based on the information provided within the question he has suggested that restorative justice should be organized around the principle of balance. In other words it should be a balanced approach that divides efforts equally into crime victims, increase competency in offenders,  enhancing community safety.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

For those followers of the Islam faith, the name for god is Mohammed A) True B) False

Answers

Answer:

B) False

Explanation:

the name for god in Islam is Allah

One way in which the Great Leap Forward and the four modernizations are similar is that each was an attempt to ? 1) increase farm and factory output
2)develop a democratic government
3)strengthen economic ties with communist neighbors
4) reduce gap between rich and poor

Answers

One way in which the Great Leap Forward and the four modernizations are similar is that each was an attempt to increase farm and factory output. Thus, the correct option is 1.

What is factory output?

An industry's output is the total amount of goods and services generated within that industry over a specific time period and sold to customers or other firms.

An economic process that uses inputs to create a good or service that is offered for purchase or usage elsewhere is said to produce an output.

In the context of production, net output, also known as netput, is a quantity that is positive if it is an output of the manufacturing process and negative if it is an input.

Because the output belongs to someone, when a certain amount of output is created, an equal amount of income is also produced.

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The answer is 1). Increase farm and factory output :)
                      Hope this helps!