Lagrange multipliertest, Advanced Statistics

Assignment Help:

The Null Hypothesis - H0:  There is autocorrelation

The Alternative Hypothesis - H1: There is no autocorrelation

Rejection Criteria: Reject H0 (n-s)R2 >641_Partial Autocorrelation Function1.png = (1515 - 4) x (0.01) = 15.11 > 9.49 (641_Partial Autocorrelation Function1.png)

1515 cases used, 4 cases contain missing values

Since 15.11 > 9.49 the chi-squared value with 4 lags (ET-1, ET-2, ET-3, and ET-4) there is evidence to suggest that we reject H0 meaning that there is no autocorrelation.    

The regression equation is

RESI1 = - 0.0011 + 0.000005 totexp - 0.000001 income + 0.000017 age + 0.00007 nk

        + 0.0085 ET-1 + 0.0070 ET-2 - 0.0284 ET-3 - 0.0074 ET-4

Predictor         Coef     SE Coef                 T      P

Constant       -0.00105     0.01375        -0.08  0.939

totexp          0.00000471  0.00006080   0.08  0.938

income        -0.00000082  0.00004314  -0.02  0.985

age              0.0000167   0.0003090     0.05  0.957

nk                0.000071     0.004785       0.01  0.988

ET-1             0.00847       0.02580         0.33  0.743

ET-2             0.00700       0.02584         0.27  0.786

ET-3           -0.02842       0.02587        -1.10  0.272

ET-4          -0.00743       0.02592         -0.29  0.774

As the T value decreases, the P value increases which is noticeable above due to the inclusions of lags. Most of the T values are now closer to 0 which shows that there is less reliability of the coefficient.  ET-3 will be included in a further regression analysis as it is significant with a value of -1.10, conversely ET-1, ET-2, ET-4 will be removed as they are insignificant with low T values.     

S = 0.0905514   R-Sq = 0.1%   R-Sq(adj) = 0.0%

The inclusion of lags has caused the r-squared to be really low at 0.1% which certainly suggests that the model is inadequate for explaining the Y variable. It also indicates that data points are distributed away from the line of best fit and that the independent variables are poor predictors for the dependent variable. The remaining percentage (99.9%) is the variation which is unknown.

 

Analysis of Variance

 

Source               DF         SS        MS     F      P

Regression        8    0.012127  0.001516  0.18  0.993

Residual Error  1506  12.348529  0.008200

Total                1514  12.360656

Source  DF    Seq SS

totexp   1  0.000029

income  1  0.000005

age       1  0.000011

nk         1  0.000000

ET-1      1  0.000903

ET-2      1  0.000544

ET-3      1  0.009961

ET-4      1  0.000673

Since the F value is small at 0.18 and the P value is high 0.993 it reveals that there is no relationship between the Y dependent variable and X independent variables. This indicates that as it is 0.18 it does not support the model and therefore the slopes are equal to 0.


Related Discussions:- Lagrange multipliertest

Estimating functions, The functions of the data and the parameters of inter...

The functions of the data and the parameters of interest which can be brought in use to conduct inference about the parameters when full distribution of the observations is unknown

Unequal probability sampling, Unequal probability sampling is the sampling...

Unequal probability sampling is the sampling design in which the different sampling units in the population have different probabilities of being included in sample. The differing

Lipstick Dilemma, For a career woman, wearing lipstick has become an integr...

For a career woman, wearing lipstick has become an integral part of her daily life. It is not unusual for a woman to look for a lipstick that will stay on her lips and not smudge o

RESEARCH METHODS AND STATISTICS.., a researcher is interested in whether st...

a researcher is interested in whether students who attend privte high schools have higher average SAT Scores than students in the general population. a random sample of 90 student

Implementation of huffman coding, Input to the compress is a text le with a...

Input to the compress is a text le with arbitrary size, but for this assignment we will assume that the data structure of the file fits in the main memory of a computer. Output of

Z-tests, Hello! I am currently in graduate school earning a masters in ment...

Hello! I am currently in graduate school earning a masters in mental health counseling. I am in a stats course at current and we are reviewing z-scores. I am a little lost because

Rejection Region (graded), How is the rejection region defined and how is t...

How is the rejection region defined and how is that related to the z-score and the p value? When do you reject or fail to reject the null hypothesis? Why do you think statisticians

Queuing theory, 1) Let N1(t) and N2(t) be independent Poisson processes wit...

1) Let N1(t) and N2(t) be independent Poisson processes with rates, ?1 and ?2, respectively. Let N (t) = N1(t) + N2(t). a) What is the distribution of the time till the next epoch

EM, What is the EM?

What is the EM?

Integrated Economic Statistics, Advantages and disadvantages of Integrated ...

Advantages and disadvantages of Integrated Economic Statistics

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