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

Find the cost of equity and wacc , Outdoor Travel Inc. needs to estimate th...

Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) = 0.

#title.monopoly, suppose only one professor teaches economics at your unive...

suppose only one professor teaches economics at your university, would you say that this prof is a monopolist who can exact any price from students in the form of readings assigned

SURVIVOR ISLAND.., DISCUSS THE CENTRAL ECONOMIC PROBLEM FACING THIS GROUP O...

DISCUSS THE CENTRAL ECONOMIC PROBLEM FACING THIS GROUP OF SURVIVORS

calculate real and nominal growth rate in gdp, 1. (a) Consider a perfectly...

1. (a) Consider a perfectly competitive industry that produces a total output of 190 units in the long run. Suppose there are n identical firms in the market. Each firm then produc

Econometric model for economic services, what model should i use for econom...

what model should i use for economic services and how to run spss for the same?

#title.Structural Variance Auto Regression, Can you explain the basic intro...

Can you explain the basic introduction of this methodology?

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?

Stationary point, Determine the  four  stationary  points  of  the  functi...

Determine the  four  stationary  points  of  the  function  Z= 2x 3 +y 3 -18x -12y +50 according to whether they define a maximum, minimum, or saddle point.

What do you understand by simultaneity bias, (a) What is a white noise pro...

(a) What is a white noise process? (b) Distinguish between exogenous and endogenous variables, using examples. (c) What do you understand by simultaneity bias and can OLS

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