economic interpretation

economic interpretation

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 = aLß1Kß2 , where Q = output; L = labor input; K = capital input; and a, ß1, and ß2 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
economic interpretation