Project # 2
ECO 3431 Fall 2021
1. Multiple regression problem
The data set for this project problem is available at the textbook publisher’s website, at
The data set is under the ‘students’ companion site’ section – click on ‘Browse by Resource’ and then ‘data sets in excel.’ Retrieve the “Electricity.xls’ data set (save it either under the ‘old’ excel .xls extension, or the newer .xlsx, so that you can retrieve it in gretl).
a. Regress cost of production on output and cost of capital, and write the regression equation;
b. Present, interpret and explain the coefficients, R2, and standard error of regression, as presented and interpreted in class;
c. Evaluate and explain the applicable hypothesis tests.
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