Homework Answers
t - tabulated(0.025, 37-3) = 2.02
A. Statistical Significance of Trend
t statistic = 80.912/13.653 = 5.926
which is greater than the tabulated t value
Hence, null hypothesis may be rejected,
Trend is statistically significant.
B. Disposable Income
t statistic = 0.508123/0.0460444 = 11.03500
which is greater than the tabulated T value
Thus, Disposable Income is statistically significant.
C. Correlation between errors is given by
rho = correlation(Ut,Ut-1), where U is the residual
here, rho = 0.55 (given)
D.
a. Null Hypothesis: There is no first order autocorrelation in the errors
b. Calculated test-statistic
d = 2(1 - rho) = 2( 1 - 0.55) = 0.9
c. at alpha = 0.05 , n = 37 and k = 2
DL = 1.364 and DU = 1.59
d. Since calculated d = 0.9 < DL
Ho is rejected,
there is significant positive autocorrelation of AR(1) scheme.
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coefficient that you have is zero against the alternative that it
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a bivariate regression of the form:
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i
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this parameter indicate about the relationship between X and Y?
Model 2: OLS, using observations 1965-2000 (T 36) Dependent variable: C coefficient std. error t-ratio p-value 4.851 2.68e-05 xx 4.17e-40 const 252.253 51.9974 Yd 0.959305 0.0121514 78.95 Mean dependent var 3672.531 S.D. dependent var 1223.338...
1.Which variables are statistically significant at the 5%
level?
2.Which variables are statistically significant at the 10%
level?
3.Which variables are insignificant?
4.Please present the correlation matrix of the independent
variables.
5.Please run the White test for heteroskedasticity, with
cross-products AND PRESENT YOUR RESULTS. Please explain whether the
test is significant or not.
6.If the White test is significant, please present the
heteroskedasticity-consistent White regression results.
7.Can you test this model for autocorrelation? Why of why not?
If you do,...
Predict the value of a traditional style house with 2500 square
feet of area, that is 20 years old, with 3 bedrooms and two
bathrooms, which is owner occupied at the time of sale, with a
fireplace, and not on the waterfront. Provide the “corrected
predictor”. (Prediction in the log-linear model.) need help with
the corrected predictor.
Sample: 1 1080 Included observations: 1080 Variable Coefficient Std. Error t-Statistic Prob 3.971283 0.045870 86.57653 0.0000 0.030016 0.001388 21.62198 0.0000 0.031281 0.016548 1.890282...
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An interpretation is needed for the below picture
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