Q1 a) Consider the following data on hourly wage rates (Y), labour productivity (X1) and literacy rate (X2) in a country ABV: Y 90 72 54 42 | 30 | 12 Y |XI 3 5 6 8 12 14 | X2 16 10 7 4 3 2 i. Calculate the estimators of the regression Y; = ß1 + B2X2¡ + B3X3¡ + Hi Test the hypothesis B2 = 0 against the alternative B2 > 0 at 5% level of significance. Calculate R? and R² and comment on them. ii. iii. Construct an ANOVA table and check for the significance of the regression at 5% level of significance. iv.
Q1 a) Consider the following data on hourly wage rates (Y), labour productivity (X1) and literacy rate (X2) in a country ABV: Y 90 72 54 42 | 30 | 12 Y |XI 3 5 6 8 12 14 | X2 16 10 7 4 3 2 i. Calculate the estimators of the regression Y; = ß1 + B2X2¡ + B3X3¡ + Hi Test the hypothesis B2 = 0 against the alternative B2 > 0 at 5% level of significance. Calculate R? and R² and comment on them. ii. iii. Construct an ANOVA table and check for the significance of the regression at 5% level of significance. iv.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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