In a study of travel-to-work distances the population density of regions within conurbations was modeled as a function of distance from their central business district. This generated the following regression results: Model A: Inŷ; = 12.65 – 0.319X; s.e. (2.4) (0.013) R² = 0.783 n = 40 Model B: Inŷ; = 10.92- =- 0.28,/X; s.e. (1.95) (0.011) where the variables are: Y; = population density in area i X = distance from the central business district of the area a) Interpret intercept and slope coefficients in Model A. b) Show that heteroscedasticity has been removed in Model B. c) What are the implications of this for the results in the original regression (Model A) of population density and distance from the central business district? Analyse it. d) Illustrate the fomal tests that can be used to detect the problem.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
In a study of travel-to-work distances the population density of regions within conurbations
was modeled as a function of distance from their central business district. This generated the
following regression results:
Model A:
Inŷ; = 12.65 – 0.319X;
s.e. (2.4) (0.013)
R? = 0.783 n = 40
Model B:
Inî:
= 10.92-
- 0.28,/X;
s.e.
(1.95) (0.011)
where the variables are:
Y; = population density in area i
X = distance from the central business district of the area
a) Interpret intercept and slope coefficients in Model A.
b) Show that heteroscedasticity has been removed in Model B.
c) What are the implications of this for the results in the original regression (Model A) of
population density and distance from the central business district? Analyse it.
d) Ilustrate the fomal tests that can be used to detect the problem.
Transcribed Image Text:In a study of travel-to-work distances the population density of regions within conurbations was modeled as a function of distance from their central business district. This generated the following regression results: Model A: Inŷ; = 12.65 – 0.319X; s.e. (2.4) (0.013) R? = 0.783 n = 40 Model B: Inî: = 10.92- - 0.28,/X; s.e. (1.95) (0.011) where the variables are: Y; = population density in area i X = distance from the central business district of the area a) Interpret intercept and slope coefficients in Model A. b) Show that heteroscedasticity has been removed in Model B. c) What are the implications of this for the results in the original regression (Model A) of population density and distance from the central business district? Analyse it. d) Ilustrate the fomal tests that can be used to detect the problem.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
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 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…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
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
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman