Problem collection 5

 Problem arranged 5 Essay

ECONOMETRICS: PS5

PROBLEM ESTABLISHED 5: EVALUATION PROBLEMS

you

We have this variables:

Sumado a: Food costs in UNITED STATES.

X: Friends and family income.

P: Price index.

Two diverse regressions will be estimated with the following estimation results (standard errors are in brackets):

Coefficient to get

Regression Back button

Y/P

Y / X; P

0. 112

(0. 003)

Pourcentage for

S

2 . 462

(0. 407)

-0. 739

(0. 114)

Determination

pourcentage

0. 614

0. 978

Assuming that the actual equation intended for Y comes with both Back button and L and that P and X are absolutely correlated, get and talk about the indication of the prejudice in the approximated coefficient if perhaps X is usually eliminated of the regression version (hint: get the expected value pertaining to the OLS coefficient linked to P in the initially regression with the above stand and discuss).

2

There exists an econometric study for IE University or college which corelates the average class in Econometrics with the period students utilize in different activities during the week. Some pupils are asked about how various hours that they employ in four several activities: study, sleep, work and leisure. Any activity must be incorporated into one of these several categories so that the time put in in the several activities is 168 several hours for each student.

The style is the next:

‫ݑ & ݁ݎݑݏ݈݅݁ 4ߚ + ݇ݎ݋ݓ 3ߚ & ݌݈݁݁ݏ 2ߚ + ݕ݀ݑݐݏ 1ߚ & ߙ sama dengan ܧܩܣ‬

a- Find the assumption that will not hold from this model and explain how come. b- How would you spin the model in order to fix the problem?

one particular

ECONOMETRICS: PS5

3

We certainly have the following info for the annual growth rates (%) in different countries:

Country

Sydney

Austria

Belgium

Canada

Denmark

Finland

Italy

Germany

India

Ireland

Israel

Italy

Japan

Mexico

Holland

New Zealand

Sweden

UK

USA

Inventory prices

(Y)

5

14. 1

three or more. 2

7. 9

several. 8

14. 1

being unfaithful. 9

13. 5

1 . 5

6. 4

8. 9

almost eight. 1

13. 5

5. 7

7. 5

5. 7

almost 8

7. 5

9

Consumer prices

(X)

4. a few

4. 6

2 . 5

2 . four

4. a couple of

5. 5

4. several

2 . 2

4

5

8. four

3. three or more

4. several

5. a couple of

3. 6th

3. six

4

several. 9

2 . 1

Believed Estimation

Sumado a

Residuals

With the knowledge that: ‫, ݅ݔ102. 0 & 38. 6 = ݅ݕ‬

а·ќ

Solution to the following queries:

a- Complete the lacking values in the above table.

b- Indicate together graphically and formally if the above data suffers from an outlier issue.

c- If the answer to b is great, please make clear any strategy you would perform in order to resolve the problem.

2

ECONOMETRICS: PS5

4

This table delivers information about the annual disposable cash flow per household (‫ ) ݅ݔ‬and the annual intake per capita (‫ ) ݅ݕ‬in 14 countries:

Country

1 a couple of 3 some 5 6th 7 almost eight 9 10 11 doze 13 14

Income

1 . 6 1 . 7 2 . 5 2 . 9 a few 3. eight 4. 7 5. three or more 5. 5 5. 6 6 6th. 2 six. 5 six. 6

Consumption 1 . a few 1 . six 1 . six 4 1 ) 3 three or more 1 . five 0. six 3. 5 4. eight 7. 7 6. 1 1 a few

Knowing that using the above details:

‫݅ݔ784. zero + 108. 0 = ݅ݕ‬

а·ќ

(1. 44)

Ьґ2 = 0. 176

ЬґЬµЬµ = 46. 53

(0. 304)

a- Attract a scatter plot employing Y and X in each of the responsable and describe why the researcher should suspect that there might be a heteroscedasticity problem. b- Draw a scatter plot using the forecasted values of Y plus the estimation commissions, why the researcher should certainly suspect that there could be a heteroscedasticity problem?

c- Next, two sub-regressions will be performed, one of them using the five countries with the lowest principles of X and the additional one to get the your five countries together with the highest principles of X. As a result of the two of these regressions, the researcher obtains that RSS=4. 106 inside the first regression and RSS=17. 988 inside the second regression. Calculate Goldfeld-Quandt test for a 5% level and explain your result.

five

We have the next data for 17 countries:

Country

Meters

G

Athens

Canada

Denmark

France

Indonesia

Greece

Ireland

Italy

Japan

849

778

853

a thousand

1331

185

399

554

679

2652

3888

3159

2777

3095

1091

1331

1731

1887

3

Country

Luxembourg

Holland

Norway

Spain

Spain

Laxa, sweden

U. K.

U. T. A.

Meters

G

1368

704

634

215

239

1025

609

1248

3108

2429

1881

718

957

4101

2174

4799

ECONOMETRICS: PS5...

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