Lagrange multipliertest, Advanced Statistics

Assignment Help:

The Null Hypothesis - H0:  There is autocorrelation

The Alternative Hypothesis - H1: There is no autocorrelation

Rejection Criteria: Reject H0 (n-s)R2 >641_Partial Autocorrelation Function1.png = (1515 - 4) x (0.01) = 15.11 > 9.49 (641_Partial Autocorrelation Function1.png)

1515 cases used, 4 cases contain missing values

Since 15.11 > 9.49 the chi-squared value with 4 lags (ET-1, ET-2, ET-3, and ET-4) there is evidence to suggest that we reject H0 meaning that there is no autocorrelation.    

The regression equation is

RESI1 = - 0.0011 + 0.000005 totexp - 0.000001 income + 0.000017 age + 0.00007 nk

        + 0.0085 ET-1 + 0.0070 ET-2 - 0.0284 ET-3 - 0.0074 ET-4

Predictor         Coef     SE Coef                 T      P

Constant       -0.00105     0.01375        -0.08  0.939

totexp          0.00000471  0.00006080   0.08  0.938

income        -0.00000082  0.00004314  -0.02  0.985

age              0.0000167   0.0003090     0.05  0.957

nk                0.000071     0.004785       0.01  0.988

ET-1             0.00847       0.02580         0.33  0.743

ET-2             0.00700       0.02584         0.27  0.786

ET-3           -0.02842       0.02587        -1.10  0.272

ET-4          -0.00743       0.02592         -0.29  0.774

As the T value decreases, the P value increases which is noticeable above due to the inclusions of lags. Most of the T values are now closer to 0 which shows that there is less reliability of the coefficient.  ET-3 will be included in a further regression analysis as it is significant with a value of -1.10, conversely ET-1, ET-2, ET-4 will be removed as they are insignificant with low T values.     

S = 0.0905514   R-Sq = 0.1%   R-Sq(adj) = 0.0%

The inclusion of lags has caused the r-squared to be really low at 0.1% which certainly suggests that the model is inadequate for explaining the Y variable. It also indicates that data points are distributed away from the line of best fit and that the independent variables are poor predictors for the dependent variable. The remaining percentage (99.9%) is the variation which is unknown.

 

Analysis of Variance

 

Source               DF         SS        MS     F      P

Regression        8    0.012127  0.001516  0.18  0.993

Residual Error  1506  12.348529  0.008200

Total                1514  12.360656

Source  DF    Seq SS

totexp   1  0.000029

income  1  0.000005

age       1  0.000011

nk         1  0.000000

ET-1      1  0.000903

ET-2      1  0.000544

ET-3      1  0.009961

ET-4      1  0.000673

Since the F value is small at 0.18 and the P value is high 0.993 it reveals that there is no relationship between the Y dependent variable and X independent variables. This indicates that as it is 0.18 it does not support the model and therefore the slopes are equal to 0.


Related Discussions:- Lagrange multipliertest

Describe meta-analysis, Meta-analysis is the collection of techniques wher...

Meta-analysis is the collection of techniques whereby the results of two or more independent studies are statistically combined to yield the overall answer to a question of intere

Clinical trials, Clinical trials : Medical experiments designed to assess w...

Clinical trials : Medical experiments designed to assess which of two or more treatments is much more effective. It is based on one of the oldest philosophy of the scienti?c resear

Mortality odds ratio, Mortality odds ratio  is the ratio equivalent to the ...

Mortality odds ratio  is the ratio equivalent to the odds ratio used in case-control studies where the equivalent of the cases are deaths from the cause of interest and the equival

Chapter 7&8, Chapter 7 2. Describe the distribution of sample means (shape...

Chapter 7 2. Describe the distribution of sample means (shape, expected value, and standard error) for samples of n =36 selected from a population with a mean of µ = 100 and a sta

Follow back surveys, Surveys which use lists related with the vital statist...

Surveys which use lists related with the vital statistics to sample individuals for the further information. For instance, the 1988 National Mortality Follow back Survey sampled de

Command-line options, Command-Line options Compression: C++:  ./comp...

Command-Line options Compression: C++:  ./compress  -f  myfile.txt  [-o  myfile.hzip  -s Java:  sh  compress.sh  -f  myfile.txt  [-o  myfile.hzip  -s] Decompression:

Describe length-biased sampling, Length-biased sampling : The bias which ar...

Length-biased sampling : The bias which arises in the sampling scheme based on the visits of patient, when some individuals are more likely to be chosen than others simply because

Paired availability design, Paired availability design  is a design which c...

Paired availability design  is a design which can lessen selection bias in the situations where it is not possible to use random allocation of the subjects to treatments. The desig

Explain jelinski moranda model, Jelinski  Moranda model is t he model of ...

Jelinski  Moranda model is t he model of software reliability which supposes that failures occur according to the Poisson process with a rate decreasing as more faults are diagnos

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd