Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
26 views8 pages

Production Function

The document discusses the production function, highlighting its role in connecting inputs to outputs and determining the maximum output from given inputs. It also presents regression analysis results for two models predicting price based on square footage and number of bedrooms, with statistical metrics indicating the models' fit and significance. The first model shows a significant relationship with square footage but not with the number of bedrooms, while the second model indicates a strong relationship with square footage and a less significant one with bedrooms.

Uploaded by

dinsafile2024
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
26 views8 pages

Production Function

The document discusses the production function, highlighting its role in connecting inputs to outputs and determining the maximum output from given inputs. It also presents regression analysis results for two models predicting price based on square footage and number of bedrooms, with statistical metrics indicating the models' fit and significance. The first model shows a significant relationship with square footage but not with the number of bedrooms, while the second model indicates a strong relationship with square footage and a less significant one with bedrooms.

Uploaded by

dinsafile2024
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 8

• Production Function

– It is a purely technical relationship which connects factors (inputs) to products (outputs) at any particular time period.

– It also shows the maximum quantity of output that can be produced from the given amount of variable inputs for a given
technology

– the relationship between quantity of inputs used to make a good and the quantity of output of that good
. reg lnprice lnsqrft lnbdrms

Source SS df MS Number of obs = 88


F(2, 85) = 53.23
Model 4.45830805 2 2.22915403 Prob > F = 0.0000
Residual 3.55929547 85 .041874064 R-squared = 0.5561
Adj R-squared = 0.5456
Total 8.01760352 87 .092156362 Root MSE = .20463

lnprice Coef. Std. Err. t P>|t| [95% Conf. Interval]

lnsqrft .8337177 .0988369 8.44 0.000 .6372034 1.030232


lnbdrms .0862812 .1124613 0.77 0.445 -.137322 .3098844
_cons -.7877624 .6874313 -1.15 0.255 -2.15456 .5790352

. reg price sqrft bdrms

Source SS df MS Number of obs = 88


F(2, 85) = 72.96
Model 580009.152 2 290004.576 Prob > F = 0.0000
Residual 337845.354 85 3974.65122 R-squared = 0.6319
Adj R-squared = 0.6233
Total 917854.506 87 10550.0518 Root MSE = 63.045

price Coef. Std. Err. t P>|t| [95% Conf. Interval]

sqrft .1284362 .0138245 9.29 0.000 .1009495 .1559229


bdrms 15.19819 9.483517 1.60 0.113 -3.657582 34.05396
_cons -19.315 31.04662 -0.62 0.536 -81.04399 42.414

You might also like