Calculate a Chow test statistic and test for whether the data can be pooled. What is your result?
Calculate a Chow test statistic and test for whether the data can be pooled. What is your result?
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

Transcribed Image Text:Consider a time-series model that relates Savings (Y) to disposable personal income (X) from
1970 through 1995:
Income
0000
000
000
0002
1000
1970
1975
1900
year
R² = 0.9021
income
R² = 0.2971
1955
1990
savings
500
1995
Ý= 1.0161 + 0.0803 X,
t= (0.0873) (9.6015)
250
002
soares
Ŷ 153.4947+ 0.0148X,
=
t= (4.6922) (1.7707)
RSS₂ = 10,005.22
It is well known that in 1982 the United States suffered its worst peacetime recession up to that
time. The civilian unemployment rate that year reached 9.7 percent, the highest since 1948. An
event such as
OGL
this might disturb the relationship between savings and disposable personal income (DPI). To see
if this happened, I divided the sample into two time periods: 1970-1981 and 1982-1995 (the
pre- and post-1982 recession periods) and re-estimated the models:
100
00
RSS,= 1785.032 df = 10
df = 12
Y = 62.4226 + 0.0376 X₁ +...
t= (4.8917) (8.8937)+...
R²0.7672 RSS3 = 23,248.30 df = 24
Calculate a Chow test statistic and test for whether the data can be pooled. What is your result?
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 3 steps with 6 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