(Solution) An environmental economist wished to determine the market demand function for tradable permits in carbon dioxide emissions from experimental data she... > Snapessays.com


(Solution) An environmental economist wished to determine the market demand function for tradable permits in carbon dioxide emissions from experimental data she...


An environmental economist wished to determine the market demand function for tradable permits in carbon dioxide emissions from experimental data she had collected. Using 13 different values for the price per tonne in dollars (P), the following was estimated:

 

Q = 5984.5 - 4.954 P

 

Standard error of the estimate: 270.6 Sum of squares of price: 41832.0

 

where Q is the number of thousand tonnes of carbon dioxide demanded at the price P.

 

 

1. State the direction of the alternative hypothesis used to test that the demand function is downward sloping. Type gt (greater than), ge (greater than or equal to), lt (less than), le (less than or equal to) or ne (not equal to) as appropriate in the box.

 

2. Use the tables in the text to determine the critical value used to conduct the test, assuming a 1% level of significance. If doing a two tail test, state only the positive value.

 

3. Calculate the test statistic, reporting your answer to two decimal places.

 

4. Is the null hypothesis rejected for this test? Type yes or no.

 

5. Disregarding your answer in part 4, if the null hypothesis was rejected, would the demand curve for tradable permits be downward sloping? Type yes or no.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 21, 2023

Solution~00021147638012.zip (25.37 KB)


This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 21, 2023

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote