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
Problem1: Find the general solution on -π/2 Dy/dx +(tan x)y =(sin 2 x)y 4

Explain Equivalent Fractions ? Two fractions can look different and still be equal. Different fractions that represent the same amount are called equivalent fractions. Ar

The two sides of a triangle are 17 cm and 28 cm long, and the length of the median drawn to the third side is equal to 19.5 cm. Find the distance from an endpoint of this median to

The graph C n , n  ≥  3 contains n vertices and n edges creating a cycle. For what value of n is C n a bipartite graph? Draw the bipartite graph of C n to give explanation for yo



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

Quotient Rule (f/g)' = (f'g - fg')/g 2 Here, we can do this by using the definition of the derivative or along with Logarithmic Definition. Proof Here we do the pr

3.20 euros per kilogram, 1 kilogram =2.2 pounds and current exchange rate is $1=0.9 euros. what is the price per pound?

please i need the answers to x^_7x+10 i want the vertex,axis of semetery,y intersect and the x intercept