The Chow test is based on two assumptions. You suspect that the assumption that the error variance is the same for the 2 periods, does not hold. The result being that the Chow test is not appropriate to test for structural breaks in our data. Test if the assumption of equal error variance holds. (What is expected of me?)
The Chow test tells us whether the regression coefficients are different for split data sets. Basically, it tests whether one regression line or two separate regression lines best fit a split set of data.
There are two assumptions of Chow test:
1. Error variance is the same for the 2 periods
2. There exists a structural change in the data.
The question says that there do not exist a structural change in the data and you have to test whether the error variance is the same for 2 periods.
The Chow test is based on two assumptions. You suspect that the assumption that the error variance is the same for the 2 periods, does not hold. The result being that the Chow test is not appropriate...
1.Which of the following assumptions is required to obtain a first-differenced estimator in a two-period panel data analysis? a. The idiosyncratic error at each time period is uncorrelated with the explanatory variables in both time periods. b. The variance of the error term in the regression model is not constant. c. The explanatory variable does not change over time for any cross-sectional unit. d. The explanatory variable changes by the same amount in each time period. 2.A Chow test _____....
Serial correlation, its implications on the OLS model. What is classical Assumption 4 Error term has constant variance Error term is normally distributed All explanatory variables are un correlated with error term Different observations of error term are uncorrelated each other Relationship between serial correlation and classical assumption 4. Serial violates classical assumption 4 always hold Serial violates support Serial violates is not related Serial violates is used to help when 4 violated Assuming we are using an appropriate test...
Important instructions: For all situations requiring a hypothesis test (z test, one-samplet test, one-sample variance test or two-sample t test), you must 1. Choose the appropriate test based on the information you are given 2. State null and alternative hypotheses 3. Choose a one or two tailed test and explain why you chose that test 4. Calculate the appropriate test statistic, showing all work neatly. This includes calculations of means, standard deviations, etc. 5. Draw the appropriate conclusions (i.e., do...
Important instructions: For all situations requiring a hypothesis test (z test, one-sample t test, one-sample variance test or two-sample t test), you must 1. Choose the appropriate test based on the information you are given 2. State null and alternative hypotheses 3. Choose a one or two tailed test and explain why you chose that test 4. Calculate the appropriate test statistic, showing all work neatly. This includes calculations of means, standard deviations, etc. 5. Draw the appropriate conclusions (i.e.,...
2,-/12 pointsDevoreSta19 10.Е.027 Although tea is the world's most widely consumed beverage after water, little is known about its nutritional value. Folacin is the only B vitamin present in any significant amount in tea, and recent advances in assay methods have made accurate determination of folacin content feasible. Consider the accompanying data on folacin content for randomly selected specimens of the four leading brands of green tea. 1: 7.8 6.3 6.6 8.7 9.0 10.1 9.6 2: 5.8 7.5 9.8 6.2...
this is a single sample t test problem
this is math
Assignment #11 Single Sample t-Test What factor determines whether you should use a z-test or a t-test statistic for a hypothesis test? 11.1 A sample is selected from a population mean of u 30. A treatment is administered to the individuals in the sample and, after treatment, the sample mean found to be M 11.2 = 31.3 with a sample variance of s2 9 If the sample consists of...
A. Introduction and Objective Every test has at least two sources of variation that affect the results of the test. The first source of variation is due to the experimental procedure, such as using two different testing machines that have different calibrations, or different observers reading the same equipment differently. This type of variation is often called the experimental error The second source of variation is inherent in the specimens (or sample population) themselves. In other words, no two specimens...
Use SPSS for this exam, be sure to include all the following information to get full credits: (1) null and alternative hypotheses (15%) (2) nameofthe test(15%, explain why you chose it) (3) thetest statistic and its degree offreedom or ANOVAtable(if applicable) (30%! (4) p-value (15%), and (5) scientific conclusion (25%, using 0.05 significance). 1. Ostriches live in hot environments, and they are normally exposed to the sun for long periods Mammals in similar environments have special mechanisms for reducing the...
The
z-tests
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The z-test 10.1 Assume that a treatment does have an effect and that the treatment effect is being evaluated with a z hypothesis test. If all factors are held constant, how is the outcome of the hypothesis test influenced by sample size? To answer this question, do the following two tests and compare the results. For both tests,...
I need questions 8-11. Thank you.
comp Atwood's Machine Equipment Qty Equipment 1 Mass and Hanger Set 1 Photogate with Pully Photogate with Pully 1 Universal Table Clamn 1 Large Rod 1 Small Rod 1 Double rod Clamp I 1 String Part Number ME-8979 ME-6838A ME-9376B ME-8736 ME-8977 ME-9873 Background Newton's 2 Law (NSL) states that the acceleration a mass experiences is proportional to the net force applied to it, and inversely proportional to its inertial mass la t )....