Explain the variations in the regression coefficients

Reference no: EM131132409

The table gives the results of multiple and simple regressions of LGFDHO, the logarithm of annual household expenditure on food eaten at home, on LGEXP, the logarithm of total annual household expenditure, and LGSIZE, the logarithm of the number of persons in the household, using a sample of 868 households in the 1995 Consumer Expenditure Survey. The correlation coefficient for LGEXP and LGSIZE was 0.45. Explain the variations in the regression coefficients.

Reference no: EM131132409

Questions Cloud

Perform a goldfeld-quandt test for heteroscedasticity : Sort the data set by GDP and perform a Goldfeld-Quandt test for heteroscedasticity, running regressions using the subsamples of 14 countries with the smallest and greatest GDP.

Is there evidence that this is a preferable specification : Fit an earnings function using your EAEF data set, taking EARNINGS as the dependent variable and S, ASVABC, and MALE as the explanatory variables, and perform a Goldfeld-Quandt test for heteroscedasticity in the S dimension. (Remember to sort the ..

How could the analyst mitigate the effects of correlation : ECN 425: Introductory Econometrics. Consider the model y = β0 + β1x1 + β2x2 + β3x3 + u, where x1 and x2 are highly correlated. Discuss how this correlation would affect the OLS estimators for β0, β1, β2 and β3. How could the analyst mitigate the effe..

Compare the results of the two regressions : Calculate the correlations between SIBLINGS and the other explanatory variables. Compare the results of the two regressions.

Explain the variations in the regression coefficients : he correlation coefficient for LGEXP and LGSIZE was 0.45. Explain the variations in the regression coefficients.

Summarize the results to executive management team of omega : Provide a one to two page analysis summarizing the results to the executive management team of Omega. The summary should highlight the priority of business functions, along with the potential for loss in the event of a disaster or sustained outage..

Discuss how each of these levels contributes to human error : In the conclusion, Manuele states: "To avoid hazard-related incidents resulting in serious injuries, human error potentials must be addressed at the cultural, organizational, management system, design, and engineering levels, and with respect to t..

Compare the coefficients of asvabc in regressions : Compare the coefficients of S in regressions (1) and (2). Give both mathematical and intuitive explanations of the direction of the change. Also compare the coefficients of ASVABC in regressions (1) and (3) and explain the direction of the change.

What are the total budgeted costs for the media department : Under the dual-rate method, what amount of cost is allocated to Premier if fixed costs areallocated based on budgeted usage and variable costs are allocated based on actual usage?

User Account

All Pages