A researcher considers the following relationship between Output of Sugar, Capital, Labour and
Land for GuySuCo. He used a double log model and estimate the relationship using Eviews which
is as follow:
Dependent Variable: LOG(OUTPUT)
Method: Least Squares
Date: 10/23/14 Time: 04:41
Sample: 1976 2006
Included observations: 31
Variable\tCoefficient\tStd. Error\tt-Statistic\tProb.
C\t11.86276\t0.566204\t20.95139\t0.0000
LOG(CAPITAL)\t0.018938\t0.056860\t0.333056\t0.7417
LOG(LABOUR)\t0.029657\t0.026501\t1.119118\t0.2729
LOG(LAND)\t0.707181\t0.114605\t6.170578\t0.0000
R-squared\t0.652501\tMean dependent var\t15.00572
Adjusted R-squared\t0.613890\tS.D. dependent var\t0.130260
S.E. of regression\t0.080940\tAkaike info criterion\t-2.070295
Sum squared resid\t0.176886\tSchwarz criterion\t-1.885264
Log likelihood\t36.08957\tHannan-Quinn criter.\t-2.009979
F-statistic\t16.89937\tDurbin-Watson stat\t1.740539
Prob(F-statistic)\t0.000002
From the Eviews output above, you are required to write out the estimated model and interpret all
the elasticities and the coefficient of determination. (15 Marks)