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:

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); X_1t denotes income (in rupees) and X_2t 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

Expected values and variances, What is the expected value and variance of y...

What is the expected value and variance of y = 3x+2 knowing that E(X) = 8 and var(X) = 4.

Marginal revenue function, A firm has the certain total revenue (TR) functi...

A firm has the certain total revenue (TR) function: TR=(4Q+2) e 4Q where Q is Quantity Find the firm's marginal revenue function.

Need help with Econometrics Coursework, Hello I am a PostGrad student. Need...

Hello I am a PostGrad student. Need some help in the coursework

David the most interest, David has £5000 that he wishes to save for ...

David has £5000 that he wishes to save for six years. Bank A offers him an interest rate of 4% per annum compounded monthly. Bank B offers him an interest ra

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

about t-ratio test under multicolinarity

Auxiliary regression, Why use auxiliary regression? What are the benefits o...

Why use auxiliary regression? What are the benefits of using it?

Portfolio maximization , Derive marginal benefit of reducing principal bala...

Derive marginal benefit of reducing principal balances

Calculate wage differential, Suppose years of schooling, s , is the only v...

Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and

Impulse Response function (IRF), My question is that when we use Impulse re...

My question is that when we use Impulse response function and how to use it. Is it used along with some other methodology. What is the meaning of graphs of IRF?

Source of heteroseedasticity.., what is the source of heteroseedasticity

what is the source of heteroseedasticity

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages