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.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Q1
a) Consider the following data on hourly wage rates (Y), labour productivity (Xi) and
literacy rate (X2) in a country ABV:
Y 90 72 54 42 30 12
XI 3 5 6 8 12 14
16 10 7 4
X2 3 2
Calculate the estimators of the regression Y; = ß1 + B2X2i + B3X3¡ + Hi
Test the hypothesis B2 = 0 against the alternative ß2 > 0 at 5% level of
significance.
Calculate R² and R² and comment on them.
i.
ii.
iii.
Construct an ANOVA table and check for the significance of the regression at
5% level of significance.
iv.
Transcribed Image Text:Q1 a) Consider the following data on hourly wage rates (Y), labour productivity (Xi) and literacy rate (X2) in a country ABV: Y 90 72 54 42 30 12 XI 3 5 6 8 12 14 16 10 7 4 X2 3 2 Calculate the estimators of the regression Y; = ß1 + B2X2i + B3X3¡ + Hi Test the hypothesis B2 = 0 against the alternative ß2 > 0 at 5% level of significance. Calculate R² and R² and comment on them. i. ii. iii. Construct an ANOVA table and check for the significance of the regression at 5% level of significance. iv.
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