An Analyst Examines the Effect That Various Variables Have on Crop

Essay

An analyst examines the effect that various variables have on crop yield. He estimates y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε. where y is the average yield in bushels per acre, x₁ is the amount of summer rainfall, x₂ is the average daily use in machine hours of tractors on the farm, and x₃ is the amount of fertilizer used per acre. The results of the regression are as follows: a. At the 10% significance level, are the explanatory variables jointly significant in explaining crop yield? Explain.
B) At the 10% significance level, is fertilizer significant in explaining crop yield? Explain.
C) At the 10% significance level, can you conclude that the slope coefficient attached to rainfall differs from 9? Explain.