Fit a simple linear regression model to the data, Microeconomics

Assignment Help:

1. Refer to the data in the file "asm2Q1.xls" on the annual number of fatalities (FATALS, y) from gas and dust explosion in coal mines for the years 1915 to 1978 and the number of labour hours (HOURS, x, in millions) of production work.

a) Fit a simple linear regression model to the data and construct a 95% prediction interval for y when x = 60.

b) Use Szroeter's test to investigate the constant variance assumption of the simple linear regression model in a). What conclusion can you draw at 5% level?

c) Suppose instead, a new regression model is fitted using the transformed y value y*=sqrt(y), ie, the model

y* = sqrt(y) = b0 +b1x + e

is fitted. Construct again a 95% prediction interval for y (not y*) when x = 60 based on this transformed model.

d) Use Szroeter's test to investigate the constant variance assumption for the model in c). What conclusion can you draw at 5% level?

e) Compare the two intervals in a) and in c). Which one would you recommend? Explain.


Related Discussions:- Fit a simple linear regression model to the data

Isoquants, Isoquants * Assumptions - Food producer has 2 inputs ...

Isoquants * Assumptions - Food producer has 2 inputs Labor (L) & Capital (K) * Observations:  1) For any level of K, output increases with L.  2) For any

Identify the cases for government intervention in an economy, Problem 1: ...

Problem 1: i) How might unemployment arise? ii) Critically explain how fiscal policy can be used to reduce the unemployment rate in an economy. iii) ‘'Inflation always

Production, explain the concept economies/diseconomies of scale and minimum...

explain the concept economies/diseconomies of scale and minimum efficient scale

Positive and normative statement, differentiate between normative and posit...

differentiate between normative and positive statements in economics with the help of a statement

Determinants of private demand - ability to pay, Determinants of Private De...

Determinants of Private Demand - Ability to Pay In a developing country like India, of all the factors determining investments in education, the most important factor is the ‘

Rational decision, what is rational decision and why it requires one''s cho...

what is rational decision and why it requires one''s choices be consistent with one''s goals?

Ccc, #question.ccccc

#question.ccccc

Explain the roles of economics theory, Explain the roles of economics theor...

Explain the roles of economics theory. Roles of Economic Theory An economic theory has three probable roles: a. This can be used to describe economic behavior and economi

Quantity pricing, 1. Sam Smith owns an internet radio company that has subs...

1. Sam Smith owns an internet radio company that has subscribers in Houston and Dallas. The demand functions for the 2 markets are: Q(Houston) = 50-0.35P(Dallas) Q(Dallas) = 80-0.

Trade policy, TRADE policy: The well known economist D. H. Robertson h...

TRADE policy: The well known economist D. H. Robertson has immortalized the role of trade in development with his famous statement that "trade is an engine of growth". The pol

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