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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
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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?
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?
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