Refer to Exercise 7.19 about the demand function for chicken in theUnited States.a. Using the log linear, or double log, model, estimate the various auxiliaryregressions. How many are there?b. From these auxiliary regressions, how do you decide which of the regressor (s)are highly collinear? Which test do you use? Show the details of your calculations.c. If there is significant collinearity in the data, which variable(s) wouldyou drop to reduce the severity of the collinearity problem? If you dothat, what econometric problems do you face?d. Do you have any suggestions, other than dropping variables, to ameliorate thecollinearity problem? Explain
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