Problem
Economists at the Wilson Company are interested in developing a production function for fertilizer plants. They collected data on 15 different plants that produce fertilizer (see the following table)
Questions
1. Estimate the Cobb-Douglas production function Q = αLβ1Kβ2 , where Q = output; L = labor input; K = capital input; and α, β1, and β2 are the parameters to be estimated.
2. Test whether the coefficients of capital and labor are statistically significant.
3. Determine the percentage of the variation in output that is "explained" by the regression equation.
4. Determine the labor and capital estimated parameters, and give an economic interpretation of each value
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.