Homework Help is Here – Start Your Trial Now!
Math
Statistics
Specify the regression model. b. Determine the dependent and independent variables? c. What is the coefficient of determination, R2? What does this statistic tell you? (Is the model fitted the data reasonably well?) d. What is the standard error of the regression line? e. Test the hypothesis that b₁ b₂b3-b3=b4=b₁ = b = 0 i.e. jointly equal to zero. (Test the overall validity of the model) f. Interpret the result of the estimated coefficients. g. What are the signs of the coefficients? h. What would be the testing procedure if we assume that the relationship between public consumption and GDP is positive? Test at the 5 % level of significance. i. Repeat the same questions but with double log model: Sample regression line In = b + b, ln X₁,+ b₂ ln X₂,+ b3 ln X31+ b4 ln X4+ bạ ln Xs, + b, ln Xa+e 61

Specify the regression model. b. Determine the dependent and independent variables? c. What is the coefficient of determination, R2? What does this statistic tell you? (Is the model fitted the data reasonably well?) d. What is the standard error of the regression line? e. Test the hypothesis that b₁ b₂b3-b3=b4=b₁ = b = 0 i.e. jointly equal to zero. (Test the overall validity of the model) f. Interpret the result of the estimated coefficients. g. What are the signs of the coefficients? h. What would be the testing procedure if we assume that the relationship between public consumption and GDP is positive? Test at the 5 % level of significance. i. Repeat the same questions but with double log model: Sample regression line In = b + b, ln X₁,+ b₂ ln X₂,+ b3 ln X31+ b4 ln X4+ bạ ln Xs, + b, ln Xa+e 61

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
MULTIPLE REGRESSION USING EVIEWS A group of economists from the Universiti Putra Malaysia (UPM) would like to study the factors that influence the variation of the Gross Domestic Product (GDP) of Malaysia. Economic theory says that there are six factors that influence the variation of GDP namely private consumption, public consumption, private investment, public investment, import and export. They have collected data on all these variables from 1973 to 1998 (Table 1) in constant prices to avoid the inflationary effect on the prediction. Table 1: GDP DATA FOR MALAYSIA IN RM X1 X2 49092 71579 X3 Ix4 X5 X6 5484 3025 Year Y 1973 49853 1719 3639 1449 52 1974 75752 3180 2225 7583 3555 10280 5033 19479 7169 13590 9022 22855 9798 27514 10640 2712 4247 1975 124369 117207 1976 110320 1977 116003 1978 145194 123510 19164 1979 174047 147680 23516 1980 196050o 165270 26376 15994 13982 39588 14016 1981 231433 192810 30825 22102 15427 46708 16977 1982 259015 223832 33920 23529 16553 57661 18842 1983 294189 255794 36639 21181 18269 61775 24081 1984 355185 306491 44033 23614 19934 64952 26065 1985 406933 347748 49690 29912 22755 74361 31189 1986 466227 392801 58438 29229 29217 77314 33856 1987 539201 458991 61245 33404 36086 88112 37587 1988 597136 509429 69969 38290 36016 101583 45015 1989 659598 551725 90455 42891 42300 118958 51185 1990 737571 614255 103218 47275 47152 135751 61422 1991 834392 685204 114732 48562 47393 135133 73634 1992 906502 728632 124937 60063 49788 147614 90696 1993 948065 747703 134304 74406 60808 173325 104169 1994 1230365 806319 147280 80676 78251 187740 121892 1995 1170261 913049 160798 110172 84479 263133 165705 5966 3674 98340 15252 90876 18162 5932 5242 5658 7728 8148 8205 9927 1996 1401600 1026129 177655 139343 81857 310913 184359 1997 1403045 1099416 198225 151263 91164 325591 216723 1998 15483341212106218217 173012 102851 365873 266809 where Y = GDP at constant prices. X, = Private consumption. X, = Public consumption. X, = Private investment. %3! %3D %3D X, = Public investment X, = Import X, = Export.
Transcribed Image Text:MULTIPLE REGRESSION USING EVIEWS A group of economists from the Universiti Putra Malaysia (UPM) would like to study the factors that influence the variation of the Gross Domestic Product (GDP) of Malaysia. Economic theory says that there are six factors that influence the variation of GDP namely private consumption, public consumption, private investment, public investment, import and export. They have collected data on all these variables from 1973 to 1998 (Table 1) in constant prices to avoid the inflationary effect on the prediction. Table 1: GDP DATA FOR MALAYSIA IN RM X1 X2 49092 71579 X3 Ix4 X5 X6 5484 3025 Year Y 1973 49853 1719 3639 1449 52 1974 75752 3180 2225 7583 3555 10280 5033 19479 7169 13590 9022 22855 9798 27514 10640 2712 4247 1975 124369 117207 1976 110320 1977 116003 1978 145194 123510 19164 1979 174047 147680 23516 1980 196050o 165270 26376 15994 13982 39588 14016 1981 231433 192810 30825 22102 15427 46708 16977 1982 259015 223832 33920 23529 16553 57661 18842 1983 294189 255794 36639 21181 18269 61775 24081 1984 355185 306491 44033 23614 19934 64952 26065 1985 406933 347748 49690 29912 22755 74361 31189 1986 466227 392801 58438 29229 29217 77314 33856 1987 539201 458991 61245 33404 36086 88112 37587 1988 597136 509429 69969 38290 36016 101583 45015 1989 659598 551725 90455 42891 42300 118958 51185 1990 737571 614255 103218 47275 47152 135751 61422 1991 834392 685204 114732 48562 47393 135133 73634 1992 906502 728632 124937 60063 49788 147614 90696 1993 948065 747703 134304 74406 60808 173325 104169 1994 1230365 806319 147280 80676 78251 187740 121892 1995 1170261 913049 160798 110172 84479 263133 165705 5966 3674 98340 15252 90876 18162 5932 5242 5658 7728 8148 8205 9927 1996 1401600 1026129 177655 139343 81857 310913 184359 1997 1403045 1099416 198225 151263 91164 325591 216723 1998 15483341212106218217 173012 102851 365873 266809 where Y = GDP at constant prices. X, = Private consumption. X, = Public consumption. X, = Private investment. %3! %3D %3D X, = Public investment X, = Import X, = Export.
Model Specification The model has been specified as follows: Sample regression line b,Xs + b,X6 + e, b, + b,X+ b,X+ b;X, + b,X4+ %3D Questions: a. Specify the regression model. b. Determine the dependent and independent variables? c. What is the coefficient of determination, R?? What does this statistic tell you? (Is the model fitted the data reasonably well?) d. What is the standard error of the regression line? e. Test the hypothesis that b, = b,= b, = b, = b,= b,= b, = 0 i.e. jointly equal to zero. (Test the overall validity of the model) f. Interpret the result of the estimated coefficients. g. What are the signs of the coefficients? h. What would be the testing procedure if we assume that the relationship between public consumption and GDP is positive? Test at the 5 % level of significance. i. Repeat the same questions but with double log model: Sample regression line X3 + b, In X4+ In = b, + b, In X+ b, In X,+ b; In b, In Xs+ b, In X+ e,
Transcribed Image Text:Model Specification The model has been specified as follows: Sample regression line b,Xs + b,X6 + e, b, + b,X+ b,X+ b;X, + b,X4+ %3D Questions: a. Specify the regression model. b. Determine the dependent and independent variables? c. What is the coefficient of determination, R?? What does this statistic tell you? (Is the model fitted the data reasonably well?) d. What is the standard error of the regression line? e. Test the hypothesis that b, = b,= b, = b, = b,= b,= b, = 0 i.e. jointly equal to zero. (Test the overall validity of the model) f. Interpret the result of the estimated coefficients. g. What are the signs of the coefficients? h. What would be the testing procedure if we assume that the relationship between public consumption and GDP is positive? Test at the 5 % level of significance. i. Repeat the same questions but with double log model: Sample regression line X3 + b, In X4+ In = b, + b, In X+ b, In X,+ b; In b, In Xs+ b, In X+ e,
Expert Solution
steps

Step by step

Solved in 9 steps with 55 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar 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
SEE MORE TEXTBOOKS