Suppose that the following import function for Turkey is estimated for Turkey between 1980-2015

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2. Suppose that the following import function for Turkey is estimated for Turkey between 1980-2015
Import; = a, + azGDP; + az ER; + ut|
In order to measure the impact of 2001 crisis the regression is estimated based on the whole and two subsamples and the
following RSS are obtained.
Time period: 1980-2000 RSS1= 69
Time period: 2001-2015RSS2 =35
Time period: 1980-2015. RSS = 160
Carry out the Chow test whether the regressions for the two periods are different at 5% significance level.
Transcribed Image Text:2. Suppose that the following import function for Turkey is estimated for Turkey between 1980-2015 Import; = a, + azGDP; + az ER; + ut| In order to measure the impact of 2001 crisis the regression is estimated based on the whole and two subsamples and the following RSS are obtained. Time period: 1980-2000 RSS1= 69 Time period: 2001-2015RSS2 =35 Time period: 1980-2015. RSS = 160 Carry out the Chow test whether the regressions for the two periods are different at 5% significance level.
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