Run a chi-square test, Mathematics

Assignment Help:

Download the data on Gas Mileage.  This is a sample of 81 passenger cars with information about gas consumption and other technical details.

    a.        Estimate the following model,  MPGi  =  b0  +  b1 * WTi +  b2 * SPi  +  b3 * HPi +  ei     

Where:             MPG = Miles driven per gallon of gasoline by the i-th car, in miles.

WT = Vehicle weight of the i-th car, in hundreds of lbs.

SP = Top speed of the i-th car, in miles per hour.

HP = Engine horsepower of the i-th car.

and write down your results in full reporting mode.

   b. Since you are using cross-sectional data, you want to check for the existence of Heteroskedasticity.  You do not have any specific correction factor in mind.  So, you decide to run a White-test.  Describe the procedure and write down your results in full reporting mode.

    c. Run a chi-square test to check for Heteroskedasticity in your data and report your conclusions.

    d. Assuming that you have rejected the null hypothesis of Homoskedasticity, you suspect that HP may be the variable that is causing Heteroskedasticity.  Run a Park test to check your suspicions, write down your results and report your conclusions.

    e. Plot a scatter graph of the residuals from your equation in (a) above against the HP variable to visually verify the existence of heteroskedasticity.

     f.  Assuming that you have confirmed your suspicions, proceed with the necessary transformation of your data to run a Weighted Least Squares regression, and write down your results.

    g. Explain the differences between the two models that you have estimated in (a) and (f) in terms of formulation, and signs and sizes of estimated coefficients.  Which of the two models (a) or (f) do you prefer?


Related Discussions:- Run a chi-square test

Use mathematical induction and prove equation, 1. Use mathematical inductio...

1. Use mathematical induction to prove whenever n is a positive integer. 2. Use loop invariant to prove that the program for computing the sum of 1,...,n is correct.

Operation research, Advantages and disadvantages of operation researchs

Advantages and disadvantages of operation researchs

School mathematics, I am interested in school mathematics online assignment...

I am interested in school mathematics online assignments , homework help, projects etc. I have good knowledge of mathematics and experience of 15+ years teaching mathematics in cen

Calculate the net amount and distance, 1. A train on the Bay Area Rapid Tra...

1. A train on the Bay Area Rapid Transit system has the ability to accelerate to 80 miles/hour in half a minute. A.   Express the acceleration in miles per hour per minute. B

Variance-measure of central tendency, Variance Square of the standard...

Variance Square of the standard deviation is termed as variance. The semi inter-quartile range - It is a measure of dispersion which includes the use of quartile. A q

Formulas of summation notation, Formulas Now there are a couple of nice...

Formulas Now there are a couple of nice formulas which we will get useful in a couple of sections. Consider that these formulas are only true if starting at i = 1. You can, obv

Explain adding rational expressions different denominators, Explain Adding ...

Explain Adding Rational Expressions with Different Denominators When you add or subtract fractions or rational expressions that have different denominators, you must first find

Show that x(q-r) + y(r-p) + z(p-q) = 0, If the p th , q th & r th term of...

If the p th , q th & r th term of an AP is x, y and z respectively, show that x(q-r) + y(r-p) + z(p-q) = 0 Ans:    p th term ⇒ x = A + (p-1) D q th term ⇒ y = A + (

Function to convert a complex number in algebraic form, Go back to the com...

Go back to the complex numbers code in Figures 50 and 51 of your notes. Add code fragments to handle the following: 1. A function for adding two complex numbers given in algeb

Explain how we converting fractions to percents, Explain how we Converting ...

Explain how we Converting Fractions to Percents ? To convert a fraction to a percent: 1. Convert the fraction to a decimal using long division. 2. Move the decimal point two p

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