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The following data relating cigarette smoking and death rates for lung cancers in 14 states in the USA. The data are based in part on records concerning 1960 cigarette tax receipts.
a) Draw a scatter diagram relating cigarette use and death rates from lung cancer.
b) Estimate the regression parameters α and β.
c) Test at the .05 level of significance the hypothesis that cigarette consumption does not
affect the death rate from lung cancer.
d) What is the p-value of the test in part c)?
Consider two firms producing an identical product in a market where the demand is described by p = 1; 200 - 2Y. The corresponding cost functions are c1 (y1) = y 2 1 and c2 (y2) =
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