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

Modelling in eviews software, Would you please advise me what would be the ...

Would you please advise me what would be the code in Eviews if I have first dependent variable in continuous data, second censor data and third discrete data in my system (structu

Calculate wage differential, Suppose years of schooling, s , is the only v...

Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and

European chemical industry, Show which of the following are cross-section d...

Show which of the following are cross-section data, giving the reasons. (i)    Wages of individual workers in the UK chemical industry in 2009. (ii)    Annual growth rates of eve

Demand=price, expected solution plus hypothesis

expected solution plus hypothesis

Econometric model, Provide a clear statement of the research topic and the ...

Provide a clear statement of the research topic and the underlying relationship that you are modeling. Identify the dependent variable and the independent variables (minimum of 3 i

Regression, Consider a linear model to explain pricing of houses: Price = ß...

Consider a linear model to explain pricing of houses: Price = ß0 + ß1lotsize + ß2sqrft + ß3bdrms + u (1) E(u| lotsize, sqrft, bdrms)=0 Var (u| lotsize, sqrft, bdrms)=s2 lotsize4

Example of random variable, Let W be a random variable such that Supp (W) =...

Let W be a random variable such that Supp (W) = {2, -1, 0, 1, 2 } and What is p? Define U = W 2 . What is Supp (U) and fU (u) = Pr [U = u] for u ∈ Supp (U)? Compute E [W] a

Explain the term volatility clustering, Problem: (a) Write down the equ...

Problem: (a) Write down the equation for symmetric GARCH and clearly explain its components. (b) Explain the term ‘volatility clustering'. (c) How would you model leverag

Ac, what is ac that mines average cost,

what is ac that mines average cost,

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