QUESTION THREE Model comparison is very important in econometric analysis. Mr Homoscedasticity Mbewe, a Senior Researcher at the Ministry of Finance was conducting an analysis into factors that influence consumer loan default in Zambia. He obtained the following restricted model (model 1): Variable P-value Age Income Marital status 0.08 0.05 0.01 ii) Coefficient 0.03 0.08 0.10 Model 2: The unrestricted model has additional variables of 'Employment status' with 0.31 P-value and -0.08 coefficient value; and 'Financial literacy' with 0.23 p-value and 0.013 coefficient value. The sample size (n) of his study was 542 and he used 5% level of significance in his estimation. The RSS value of the unrestricted model is 2023.61 i) AIC BIC Adjusted R-squared Model Values R-squared=0.66 ESS-3973 Using the F-test, demonstrate how Mr. Homoscedasticity can conduct his model comparison (between restricted and the unrestricted models). Given the information below, comment on the model fit and compare your conclusions to those under the F-test conducted in (i) Criteria Model 1 Model 2 4020.12 4068.53 4055.08 4157.82 0.68 0.64

QUESTION THREE Model comparison is very important in econometric analysis. Mr Homoscedasticity Mbewe, a Senior Researcher at the Ministry of Finance was conducting an analysis into factors that influence consumer loan default in Zambia. He obtained the following restricted model (model 1): Variable P-value Age Income Marital status 0.08 0.05 0.01 ii) Coefficient 0.03 0.08 0.10 Model 2: The unrestricted model has additional variables of 'Employment status' with 0.31 P-value and -0.08 coefficient value; and 'Financial literacy' with 0.23 p-value and 0.013 coefficient value. The sample size (n) of his study was 542 and he used 5% level of significance in his estimation. The RSS value of the unrestricted model is 2023.61 i) AIC BIC Adjusted R-squared Model Values R-squared=0.66 ESS-3973 Using the F-test, demonstrate how Mr. Homoscedasticity can conduct his model comparison (between restricted and the unrestricted models). Given the information below, comment on the model fit and compare your conclusions to those under the F-test conducted in (i) Criteria Model 1 Model 2 4020.12 4068.53 4055.08 4157.82 0.68 0.64

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 5E

See similar textbooks

Similar questions

How do you solve for b0?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Chegg Home Expert Q&A My solutions Student question Time Left: 00:09:16 Use the data set Home Morloage Disdosure Act Data (HMDA) from the AER package. Subtract 1 from the factor "Was the mortage denied?". Then, eatimate the Inear regression model of paymentsto - income rato on the factor "Was the mortage denied?" ising Ols. Based on these results, the prebabity a mertougo will be denled if the payment - to - income ratio is equal to 2 is a. 1.13 b. 0.107 c. None of these d. 0.52 e. 1.00 Use the data set Home Mortgage Disclosure Act Data (HMDA) from the AER package. Subtract 1 from the factor "Was the mortage denied?". Then, estimate the linear regression model of payments-to-income ratio on the factor "Was the mortage denied?" using OLS. Based on these results, the probability a mortgage will be denied if the payment-to-income ratio is equal to 2 is a. 1.13 Ob.0.87 Oc None of these d.0.52 1.00
a) Figure 1 reports a scatter plot of hhinc (horizontal axis) and size (vertical axis). Do you see any correlation in the data? Can you conclude that a higher net income causes a higher home size? 300000 nhine 100000 200000 400000 Figure 1 000s COOP D001
6
Only typed answer and please don't use chatgpt
What is differance between three sector ecnomoy and four sector ecnomoy
Problem 1
Which of the following statements is false about the opportunity cost of taking an online economics class ? It will include the value of the time spent in the Zoom session. It will include the sum of obvious cost and hidden cost. It will include the cost of parking and food. It will include the cost of tuition and MyEconLab.
9
8. Which of the following best describes the linear probability model? The model is the application of the linear multiple regression model to a binary dependent variable The model is an example of probit estimation The model is another form of logit estimation The model is the application of the multiple regression model with a binary variable as at least one of the regressors OO
Assume that the dummy variables Marriedal if married (0 if not married), Sex=1if male (0 if female), and that you estimate the equation: loglwage) le + B,'Married + B'Sex + B,(Married Sex). The estimated log wage for an unmarried woman can be estimated by: Bo