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5. Daily Production Data
Day
L
q
1
5
250
2
7
385
3
8
442
4
6
331
324
10
500
11
478
9
12
432
490
480
494
13
317
14
399
15
448
1) Using Excel's Regression package estimate a production function for Summit Farms which is of the form: q =a L3 + bL2. Provide the detailed regression output generated by Excel. Identify the estimates of the coefficients a and b. Write the equation for the estimated production function. Identify the value of R2 .
If you are using a Mac you can use the linest function key for running the regression.
2) Using the estimated function and Excel's charting tool plot the Total Product of Labor (TPL), the Average Product of Labor (APL) and the Marginal Product of Labor Curves. Are these graphs and thus the estimated cubic production function consistent with standard TPL, APL and MPL curves?
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