b) Let the output function of the fifteen factories of garments industry of Bangladesh is given by., OUT= A.LK/e, where

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B Let The Output Function Of The Fifteen Factories Of Garments Industry Of Bangladesh Is Given By Out A Lk E Where 1 (120.98 KiB) Viewed 12 times

b) Let the output function of the fifteen factories of garments industry of Bangladesh is given by., OUT= A.LK/e, where OUT, is the output (in million USD), L, is the labor force, and K, is the capital investment of the ith firm. A, is the constant and e, is the random error term corresponding to the ith set of observations. For the given model the following information are given. 15 15 15 15 15 ΣΥ=86.15 , ΣΧ. =110.89 , ΣΧ, = 95.96 , ΣΧΥ = 638.34 , ΣX, Y = 553.85 , i=1 i=1 i-1 15 15 ΣΧ = 820.12, ΣX = 616.70, ΣY = 500.18, ΣΧΧ =710.14, and Residual Sum of 15 15 i-l Squares = 0.4511 2.024L where Y₁ =In(OUT), X₁, In(L₁), and X₂= In(K₁) i. Estimate the model and comment on your results.. ii. Test the significance of the parameter estimates at 5% level of significance. Obtain the goodness of fit of the model and comment on your result. iii. 353.229