What is the problem with this regression, Econometrics

Assignment Help:

(a) Describe all tests that you need to undertake prior to working with time series data.

(b) Consider the following regression result:

2191_What is the problem with this regression.png

Standard Errors: (6.7525) (0.8229) (0.0807)

R-squared = 0.9835; R-bar square = 0.9631 df = 7 F-ratio= 102.40

where Y denotes consumption (in rupees); X1t denotes income (in rupees) and X2t denotes income to the square.

(i) What is the problem with this regression? Explain in details.

(ii) With reference to your answer to the above, how would you detect such problem?

(iii) A researcher wants to model the demand for Nokia mobiles in Mauritius. If you were the researcher, clearly provide a model type along with the expected signs for each of the variables you considered.


Related Discussions:- What is the problem with this regression

Economic development, what are factors contributing to the long run trend i...

what are factors contributing to the long run trend interms of trade of developing countries?

Econometric techniques analyse daily prices, Choose a share from a market s...

Choose a share from a market such as LSE, NYSE, NASDAQ, etc. [Data sources could be Datastream, Google Finance or others]. Prepare a report which involves the following aspects:

Example of random variable, Let W be a random variable such that Supp (W) =...

Let W be a random variable such that Supp (W) = {2, -1, 0, 1, 2 } and What is p? Define U = W 2 . What is Supp (U) and fU (u) = Pr [U = u] for u ∈ Supp (U)? Compute E [W] a

Surpluses at the equilibrium position, The inverse demand and supply functi...

The inverse demand and supply functions for a product are given as:  where P  is  price, Q  is  quantity  and  the  subscripts  d  and  show demand and supply, respectiv

Regression, Consider a linear model to explain pricing of houses: Price = ß...

Consider a linear model to explain pricing of houses: Price = ß0 + ß1lotsize + ß2sqrft + ß3bdrms + u (1) E(u| lotsize, sqrft, bdrms)=0 Var (u| lotsize, sqrft, bdrms)=s2 lotsize4

T-ratio test, about t-ratio test under multicolinarity

about t-ratio test under multicolinarity

Project, how much it costs to make this project?

how much it costs to make this project?

SIMALTABEOUS, PROOF THAT E(XU) DIFFERENT FROM ZERO.

PROOF THAT E(XU) DIFFERENT FROM ZERO.

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