Question

120 Midte X taylor&taylor PPEX Minimum W X Tax Credit to Enc. X GTP. Create x International x USB Staff Pox me/content/910544/viewContent/8683267/View 4560 D E YouTube Dat 2. (45pts) Consider the model log(y) - Bo + B + Boxe + B e + €, and suppose you have the following estimation results from the monthly data of January 1962 to December 1978: log(y) = (1) 2.20 +0.105x11+3.48x2 +3.40.134 + EL (3.4) (0.008) (2.20) (1.50) where the number in parentheses are standard errors (the usual OLS standard errors) and we obtain Explained Sum of Squares (ESS)=120.62, and Residual Sum of Squares (RSS)=16.45. Assume that Classical Assumptions for Multiple Linear Regression Model hold.

Answer 1

tstatistic = ($2 - Bz) - (32 - 33 ) = (3.48 -3.40 - 0 2.9 t statistic. = 0.027 t at 5% level of significance and degrees of freedom 13 (Sample size-3) is, I t = 2.16037 (From the t-table) 087 ļ 0.025 N 0.025 -2.160370 2.16037 as we i. We (Mod. see that fail to reject tstatistic <ltl the mill hypothesis