Table 78 On The Textbooks Web Site Gives Data On

Table 7-8 on the textbook’s Web site gives data on variables that might affect the demand for chickens in the United States. The dependent variable here is the per capita consumption of chickens, and the explanatory variables are per capita real disposable income and the prices of chicken and chicken substitutes (pork and beef).
a. Estimate a log-linear model using these data.
b. Estimate a linear model using these data.
c. How would you choose between the two models? What test will you use? Show the necessary computations.

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