Q : A researcher specities the tollowing model ot human capital HC a t+a,RM +a2Y +a,HS +a SC +asEDH +U Where HC is human capital (for human capital education expenditure is used as a proxy), RM = 1 if a household receives remittances and RM = 0 if a household does not receives remittances, Y = Household income, HS = Household size, SC = total number of school going children per household, EDH = 1 if head of household is literate and EDH = 0 if head of household is illiterate. Using data of 400 households he gets following results (A) HC = -6000+2010RM + 0.11Y - 80HS+805sC + 540EDH (0.02) (15) (105) (140) R(sqaure)= 0.45 SE= (2014) (215) Interpret above results Suppose researcher splits the households into low income households and high income households. He runs separate regressions and finds residuals sum of squares (RSS) 230 and 350 for 180 low income households and . 180 high income households, respectively. Is there any problem of Hetroscedasticity in above model? How do you know? ii. Suppose error variance is proportional to Y", how will you estimate model (A)? Write all steps in general form.
Q : A researcher specities the tollowing model ot human capital HC a t+a,RM +a2Y +a,HS +a SC +asEDH +U Where HC is human capital (for human capital education expenditure is used as a proxy), RM = 1 if a household receives remittances and RM = 0 if a household does not receives remittances, Y = Household income, HS = Household size, SC = total number of school going children per household, EDH = 1 if head of household is literate and EDH = 0 if head of household is illiterate. Using data of 400 households he gets following results (A) HC = -6000+2010RM + 0.11Y - 80HS+805sC + 540EDH (0.02) (15) (105) (140) R(sqaure)= 0.45 SE= (2014) (215) Interpret above results Suppose researcher splits the households into low income households and high income households. He runs separate regressions and finds residuals sum of squares (RSS) 230 and 350 for 180 low income households and . 180 high income households, respectively. Is there any problem of Hetroscedasticity in above model? How do you know? ii. Suppose error variance is proportional to Y", how will you estimate model (A)? Write all steps in general form.
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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Problem 1P
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Q : A researcher specities the tollowing model ot human capital
HC a t+a,RM +a2Y +a,HS +a SC +asEDH +U
Where HC is human capital (for human capital education expenditure is used as a
proxy), RM = 1 if a household receives remittances and RM = 0 if a household
does not receives remittances, Y = Household income, HS = Household size, SC
= total number of school going children per household, EDH = 1 if head of
household is literate and EDH = 0 if head of household is illiterate.
Using data of 400 households he gets following results
(A)
HC = -6000+2010RM + 0.11Y - 80HS+805sC + 540EDH
(0.02) (15) (105) (140)
R(sqaure)= 0.45
SE= (2014) (215)
Interpret above results
Suppose researcher splits the households into low income households and
high income households. He runs separate regressions and finds residuals
sum of squares (RSS) 230 and 350 for 180 low income households and
.
180 high income households, respectively. Is there any problem of
Hetroscedasticity in above model? How do you know?
ii. Suppose error variance is proportional to Y", how will you estimate model
(A)? Write all steps in general form.
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