Run a chi-square test, Mathematics

Download the data on Gas Mileage.  This is a sample of 81 passenger cars with information about gas consumption and other technical details.

    a.        Estimate the following model,  MPGi  =  b0  +  b1 * WTi +  b2 * SPi  +  b3 * HPi +  ei     

Where:             MPG = Miles driven per gallon of gasoline by the i-th car, in miles.

WT = Vehicle weight of the i-th car, in hundreds of lbs.

SP = Top speed of the i-th car, in miles per hour.

HP = Engine horsepower of the i-th car.

and write down your results in full reporting mode.

   b. Since you are using cross-sectional data, you want to check for the existence of Heteroskedasticity.  You do not have any specific correction factor in mind.  So, you decide to run a White-test.  Describe the procedure and write down your results in full reporting mode.

    c. Run a chi-square test to check for Heteroskedasticity in your data and report your conclusions.

    d. Assuming that you have rejected the null hypothesis of Homoskedasticity, you suspect that HP may be the variable that is causing Heteroskedasticity.  Run a Park test to check your suspicions, write down your results and report your conclusions.

    e. Plot a scatter graph of the residuals from your equation in (a) above against the HP variable to visually verify the existence of heteroskedasticity.

     f.  Assuming that you have confirmed your suspicions, proceed with the necessary transformation of your data to run a Weighted Least Squares regression, and write down your results.

    g. Explain the differences between the two models that you have estimated in (a) and (f) in terms of formulation, and signs and sizes of estimated coefficients.  Which of the two models (a) or (f) do you prefer?

Posted Date: 2/22/2013 2:01:22 AM | Location : United States

Related Discussions:- Run a chi-square test, Assignment Help, Ask Question on Run a chi-square test, Get Answer, Expert's Help, Run a chi-square test Discussions

Write discussion on Run a chi-square test
Your posts are moderated
Related Questions
A rectangular field is to be fenced in completely. The width is given as 22 yd and the total area is 990 yd 2 . Determine the length of the field? a. 31 yd b. 45 yd c. 968

zeroes of polynomial 2x2-3x-2

The region bounded by y=e -x and the x-axis among x = 0 and x = 1 is revolved around the x-axis. Determine the volume and surface area of this solid of revolution.

Safe deposit boxes are rented at the bank. The dimensions of a box are (22x5x5) in. Determine the volume of the box? a. 220 in 3 b. 550 in 3 c. 490 in 3 d. 360 in 3

The quotient of 3d 3 and 9d 5 is The key word quotient means division so the problem becomes 1d 3 -5/ 5. Divide the coef?cients:  1d 3 /3d-5 . While dividing like bases, subt

if an object weighed 11 pounds how many ounces would it weigh

how can i learn fast in multiplication table

If ABCD isaa square of side 6 cm find area of shaded region

Lindy has 48 chocolate chip cookies and 64 vanilla wafers. How many bags can lindy fill if she puts the chocolate chip cookies and the vanilla wafers in the same bags? She plans