Problem

Use APPLE.RAW to verify some of the claims made in Section 6.3.(i) Run the regression ecol...

Use APPLE.RAW to verify some of the claims made in Section 6.3.

(i) Run the regression ecolbs on ecoprc, regprc and report the results in the usual form, including the R-squared and adjusted R-squared. Interpret the coefficients on the price variables and comment on their signs and magnitudes.

(ii) Are the price variables statistically significant? Report the p-values for the individual t tests.

(iii) What is the range of fitted values for ecolbs? What fraction of the sample reports ecolbs = 0? Comment.

(iv) Do you think the price variables together do a good job of explaining variation in ecolbs? Explain.

(v) Add the variables faminc, hhsize (household size), educ, and age to the regression from part (i). Find the p-value for their joint significance. What do you conclude?

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