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

Equations, Y1=Y21Y2+Bx+U1 Y2=Y21Y1+U2 First equation is demand and second i...

Y1=Y21Y2+Bx+U1 Y2=Y21Y1+U2 First equation is demand and second is supply equation,can first equation be identifiable outline the method

Design a simple econometric project, a) Design a simple econometric project...

a) Design a simple econometric project to identify the factors that affect the demand for a good or service of your preference. Estimate the significance of these factors using mu

Rival principle of distribution., What is the rival principle of distributi...

What is the rival principle of distribution? What are the impacts of ethics and morals on the rival principles of distribution?

Adult literacy, I have a project and I need help with the writing. I have t...

I have a project and I need help with the writing. I have the data and the SPSS regression, park test

Machine breakdowns, A bottling company has determined the number of machine...

A bottling company has determined the number of machine breakdowns per month and their respective probabilities as given below:     Number of     Breakdowns        Probability

Rihgt now.., In June, Leslie wins a cash prize of $2,000. She plans to use ...

In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings a savings account because her mai

Stata, Replicate the estimations in Table 2 on page 82 of Graddy (1995), bu...

Replicate the estimations in Table 2 on page 82 of Graddy (1995), but excluding the data of King Whiting.

Level of interest rate, You have won a contest and are allowed to choose be...

You have won a contest and are allowed to choose between two prizes. One option is to receive $200 now and another $200 a year from now. The second option is $150 now and $255 a

Demand=price, expected solution plus hypothesis

expected solution plus hypothesis

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