2- Consider the following model that relates the percentage of a household's budget spent on SFOOD to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household NK. SFOOD-P₁+₂ In(TOTEXP) + PINK+PAGE +P, AGE² + u Using 1200 observations from a survey, this equation was estimated with and without the AGE variables included, giving the following results: SFOOD (se) 8.149+2.884ln(TOTEXP)-1.217NK-0.5699AGE+0.005515AGE (0.382) (0.1790) (0.002332) (0.486) 8=6.2048 SFOOD » –1,206 + 2.152ln(TOTEXP) – 1.421NK (se) (0.482) (0.376) 8= 6.3196 Use an F-test and a 5% significance level to test whether AGE and AGE¹ should be included in the equation.
2- Consider the following model that relates the percentage of a household's budget spent on SFOOD to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household NK. SFOOD-P₁+₂ In(TOTEXP) + PINK+PAGE +P, AGE² + u Using 1200 observations from a survey, this equation was estimated with and without the AGE variables included, giving the following results: SFOOD (se) 8.149+2.884ln(TOTEXP)-1.217NK-0.5699AGE+0.005515AGE (0.382) (0.1790) (0.002332) (0.486) 8=6.2048 SFOOD » –1,206 + 2.152ln(TOTEXP) – 1.421NK (se) (0.482) (0.376) 8= 6.3196 Use an F-test and a 5% significance level to test whether AGE and AGE¹ should be included in the equation.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
can you solve this econometrics solution
Transcribed Image Text:2- Consider the following model that relates the percentage of a household's budget spent on SFOOD
to total expenditure TOTEXP, age of the household head AGE, and the number of children in the household
NK.
SFOOD-P₁+ In(TOTEXP) + PINK + B.AGE +0, AGE² + u
Using 1200 observations from a survey, this equation was estimated with and without the AGE variables
included, giving the following results:
SFOOD 8.149+2.884ln(TOTEXP)-1.217NK-0.5699AGE+0.005515AGE
(0.382) (0.1790) (0.002332)
(se)
SFOOD – –1,206 + 2.152ln(TOTEXP) – 1.421NK
(se)
(0.482)
(0.376)
8 = 6.3196
Use an F-test and a 5% significance level to test whether AGB and AGE¹ should be included in the equation.
(0.486)
8=6.2048
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 16 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman