Fit a simple linear regression model to the data, Microeconomics

1. Refer to the data in the file "asm2Q1.xls" on the annual number of fatalities (FATALS, y) from gas and dust explosion in coal mines for the years 1915 to 1978 and the number of labour hours (HOURS, x, in millions) of production work.

a) Fit a simple linear regression model to the data and construct a 95% prediction interval for y when x = 60.

b) Use Szroeter's test to investigate the constant variance assumption of the simple linear regression model in a). What conclusion can you draw at 5% level?

c) Suppose instead, a new regression model is fitted using the transformed y value y*=sqrt(y), ie, the model

y* = sqrt(y) = b0 +b1x + e

is fitted. Construct again a 95% prediction interval for y (not y*) when x = 60 based on this transformed model.

d) Use Szroeter's test to investigate the constant variance assumption for the model in c). What conclusion can you draw at 5% level?

e) Compare the two intervals in a) and in c). Which one would you recommend? Explain.

Posted Date: 3/26/2013 8:09:51 AM | Location : United States







Related Discussions:- Fit a simple linear regression model to the data, Assignment Help, Ask Question on Fit a simple linear regression model to the data, Get Answer, Expert's Help, Fit a simple linear regression model to the data Discussions

Write discussion on Fit a simple linear regression model to the data
Your posts are moderated
Related Questions
draw demand curve for a-phone explain how the graph, price ,and quantity demand will change if there is an overall increase in income.

what is the application of consumer surplus

The price elasticity ( ε ) of demand for Q has been estimated at -0.5. Current consumption Q* is 70 units and market price (P*) is 0.70. a. Fit a linear demand curve to the obs

implications of varios market structure for price determination

characteristic of duopoly

#questDuring the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in ter

Policies of Savings and Investment Policies to make sure that savers get reasonable rates of return on their savings have the potential to boost savings rate. Comparing systems

why is the concept of elasticity crucial to the study of economics?

Determine the value of the marginal product of labor. Equilibrium in the Labor Market Each firm will hire labor up to the point at that the value of the marginal product of

calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2