Write down the regression function, economic model,econometric model and the estimated least squares line by using the information obtained from above table and explain what each coefficient indicates. b- Test at 95% significance level whether β3=0 . c- What can you tell about the significance of all the regression parameters together with 95% significance level ?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
We have estimated a regression of per capita income, employment rates and stock of migrants on net migration out flows. The results are as follows;
|
Dependent Variable: net migration outflows |
||||
|
Variable |
Coeff. |
Std. Error |
t-Statistic |
Prob. |
|
C |
3.078 |
1.23930 |
2,46991 |
0.0080 |
|
Ratio of per capita incomes |
1.523 |
0.65080 |
2.34305 |
0.0018 |
|
Ratio of employment rates |
0.158 |
0.16194 |
0.13609 |
0.3586 |
|
Stock of migrants |
1.011 |
0.23435 |
4.31382 |
0.0063 |
|
R-squared= 0.739 n=30 |
F statistics= 180.0681 Prob.= ,0000 |
a- Write down the regression
b- Test at 95% significance level whether β3=0 .
c- What can you tell about the significance of all the regression parameters together with 95% significance level ?
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