Estimate the values of the dependent variable, Applied Statistics

Assignment Help:

1. Suppose you are estimating the imports (from both the U.S. mainland and foreign countries) of fuels and petroleum products in Hawaii (the dependent variable). The values of the dependent variable from 1958 to 2008 are provided in the attached EXCEL file. According to economic theory, imports are affected by total personal income or disposable personal income. In addition, since Hawaii's energy consumption is mainly rely on imported crude oil, the prices of crude oil should also affect the values of imported fuels and petroleum products. The historical data of some potential independent variables (some are relevant, some are irrelevant) from 1958 to 2008 are also provided in the EXCEL file. Based on these data, please do the following:

a. Develop a linear or log-linear (double-log or convert both the DV and the IVs into LN(Y) and LN(X1), LN(X2)...) regression model to estimate the dependent variable based on the data provided in the EXCEL file. Select the independent variables (only include the relevant variables) and the forms (linear or log-linear). [Hint: you should try alternative combinations of independent variables and the regression model with highest Adjusted R Squared Value and all significant independent variables (the P-values of the independent variables should be less than 0.1) should be selected as the best model.] Run the regression models using data from 1958 to 2008.

b. Estimate the values of the dependent variable from 2006 to 2008 using your regression models (both linear and log-linear) and the values of the independent variables provided in the EXCEL file.

c. Calculate the forecasting errors from 2006-2008 based on the mean of absolute errors (MAE) [also called mean absolute deviation or MAD]. The MAE is calculated as follows: first calculate the forecast errors (the actual value of the dependent variable minus the forecasted values of the dependent variable) in each year (2006-2008), and then calculated the average values of the absolute values of the errors. Based on the MAE, which model do you recommend?

d. Run a regression using crude oil price as the only independent variable. Assuming crude oil price in 2009 and 2010 will be $70/BBL and $80/BBL, respectively, forecast the imports of fuels and petroleum products in Hawaii in 2009 and 2010.


Related Discussions:- Estimate the values of the dependent variable

the npv of the book , Bill Clinton reportedly was paid $10 million to writ...

Bill Clinton reportedly was paid $10 million to write his book My Way. The book took three years to write. In the time he spent writing, Clinton could have been paid to make speech

Half of market share, Your company has developed a new product .Your compan...

Your company has developed a new product .Your company is a reputed company with 50% market share of same range of products. Your competitors also come with their new products equa

PERCENTAGES, CALCULATE THE PERCENTAGE OF REFUNDS EXPECTED TO EXCEED $1000 U...

CALCULATE THE PERCENTAGE OF REFUNDS EXPECTED TO EXCEED $1000 UNDER THE CURRENT WITHHOLDING GUIDELINES

Determine probability that the person tested has the disease, There are two...

There are two diagnostic tests for a disease. Among those who have the disease, 10% give negative results on the first test, and independently of this, 5% give negative results on

Construct a cumulative percentage polygon, 1. For each of the following var...

1. For each of the following variables: major, graduate GPA, and height: a. Determine whether the variable is categorical or numerical. b. If the variable is numerical, deter

Define the partial market equilibrium model, Q. The following system of equ...

Q. The following system of equations illustrates the algebraic form of a partial (individual) market equilibrium model, which is a model of price (P) and quantity (Q) determination

the six conditions are equally likely, A medical researcher has 100 bone c...

A medical researcher has 100 bone cancer patients in a study. Every patient's condition is one of six types, type \A" to type \F". The 100 patients split as follows: x There

Weight distribution, What does the confidence level of a confidence interva...

What does the confidence level of a confidence interval tell you? Suppose that a population has mean, µ, and standard deviation, σ.  What does the central limit theorem tell us

Frequency distribution, mark number of student 0-10 4 10-20 8 ...

mark number of student 0-10 4 10-20 8 20-30 11 30-40 15 40-50 12 50-60 6 calculate frequency distribution

Hortons initial infiltration capacity, (a) The Horton's initial infiltratio...

(a) The Horton's initial infiltration capacity for a catchment is 204 mm/h and the constant infiltration value at saturation is 60 mm/h. For a rainfall in excess of 204 mm/h mainta

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