Consider the following multiple regression Price = 118.3 + 0.574BDR+ 22.6Bath + 0.136Hsize + 0.005Lsize + 0.072Age - 47.3Poor, R =0.73, SER = 41.4 (0.00049) (22.7) (2.99) (8.63) (0.014) (0.348) (10.2) The numbers in parentheses below each estimated coefficient are the estimated standard errors. A detailed description of the variables used in the data set is available here Suppose you wanted to test the hypothesis that BDR equals zero. That is, Ho: BDR=0 vs H1: BDR#0 Report the t-statistic for this test. The t-statistic is (Round your response to three decimal places)
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- Consider the following estimated regression for 220 home sales from a community in 2019 (estimated standard errors in parentheses) Price = 119.2 + 0.485BDR + 23.4Bath + 0.156Hsize + 0.002Lsize + 0.09Age (0.011) (2.61) (8.94) (0.00048) (0.311) R2 = 0.72 where Price denote the selling house price (measured in $1000s), BDR denote the number of bedrooms, Bath denote the number of bathrooms, Hsize denote the size of the house (in square feet), Lsize denote the lot size (in square feet), and Age denote the age of the house (in years).Consider the output here from a regression in R. What is 3₂? Coefficients: Estimate (Intercept) 1.708 5.404 -1.478 9.531 X1 X2 X3 Std. Error 0.555 2.792 0.6 2.758In the following regression Price = 119.2 +0.485BDR+23.4Bath + 0.156Hsize +0.002Lsize + 0.09 (23.9) (2.61) (8.94) (0.011) (0.00048) (0.311) (10.5) The F-statistic for omitting BDR and Age from the regression is F-statistic=0.08, which has a p-value=0.98. Are the coefficients on BDR and Age statistically significantly different from 0 at 5% level? Yes, significantly different from 0 since the p-value>0.05. O No, not significantly different from 0 since the p-value>0.05. We don't know O depends on sample size
- 4. The estimation of the model with quarterly car sales in the U.S. from 1975 to 1990 gives: Source | df MS Number of obs = 64 F( 2, Prob > F 61) = 12.21 Model .32720224 2 .16360112 0.0000 Residual | .817286587 61 .013398141 R-squared Adj R-squared = 0.2625 Root MSE 0.2859 Total | 1.14448883 63 .018166489 .11575 lqne | cCoef. t P>|t| std. Err. [95% Conf. Interval] 1price lincome -.4604611 3.37186 6.89398 -.8280926 .1838504 -4.50 0.000 -1.195724 2.399991 . 4860261 4.94 0.000 1.428121 _cons 5.92543 .4843662 12.23 0.000 4.95688 Based on the parameter estimates, what is the predicted effect of a 10% increase in price on the number of cars sold? What would be the effect of that price increase on the value of car sales?1. Consider a linear regression model y = XB + € with E(e) = 0. The bias of the ridge estimator of 3 obtained by minimizing Q(B) = (y — Xß)¹ (y — Xß) + r(BTB), for some r > 0, is ——(X²X + r1)-¹8 1 (X¹X +rI)-¹3 r -r(XTX+rI) ¹8 r(X¹X+r1) ¹3A forecaster used the regression equation Qt= a + bt+q₁D₁ + C2D2 + c3D3 and quarterly sales data for 2004/-2021/V (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D₂ and D3 are dummy variables for quarters I, II, and III. DEPENDENT VARIABLE: QT R-SQUARE OBSERVATIONS: 64 0.8768 VARIABLE INTERCEPT T D1 D2 D3 F-RATIO P-VALUE ON F 107.982 0.0001 PARAMETER STANDARD ESTIMATE 30.0 1.5 10.0 25.0 40.0 ERROR T-RATIO P-VALUE 2.34 0.0224 2.14 0.0362 3.33 0.0015 3.47 0.0010 2.53 0.0140 12.80 0.70 3.00 7.20 15.80 In any given year, quarterly sales tend to vary as follows:
- You estimated a regression with the following output. Source | SS df MS Number of obs = 268 -------------+---------------------------------- F(1, 266) = 23.48 Model | 668419.175 1 668419.175 Prob > F = 0.0000 Residual | 7572666.51 266 28468.6711 R-squared = 0.0811 -------------+---------------------------------- Adj R-squared = 0.0777 Total | 8241085.68 267 30865.4895 Root MSE = 168.73 ------------------------------------------------------------------------------ Y | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- X | 1.014128 .2092916 4.85 0.000 .6020489 1.426207 _cons | 9.173163 21.13463 0.43 0.665 -32.43929 50.78561…(e) Suppose you have been given the following ordinary least squares (OLS) regression result. Estimated Long Run Coefficients using the ARDL Approach ARDL (1,2,2,2,0,2) selected based on Akaike Information Criterion Dependent variable is LY 33 observations used for estimation from 1987 to 2019 T-Ratio [Prob.] 4.6671[0.000] 4.6678[0.051] 7.9897[0.043] -4.802[0.009] 2.3898[0.028] 1.0498[0.308] Regressor Coefficient Standard Error 0.36068 0.45447 LK 0.077280 LM 0.097363 0.48751 -0.41208 0.19057 0.52521 LE 0.061017 LF 0.085800 LT 0.079744 C 0.500320 where, Y = Economic growth K = Capital M = Employment E = Electricity consumption F = Foreign direct investment T= Technology (i) Write the regression equation. Interpret the estimated coefficients. (ii) Which explanatory variables are significant at the 1%, 5% and 10% level? Which variables are insignificant? Briefly explain.The following two equations were estimated using the data in MEAPSINGLE. The key explanatory variable is lexppp, the log of expenditures per student at the school level. math4 = 24.49 + 9.01 lexpp – 422 free – .752 Imedinc – .274 pctsgle (.071) (59.24) (4.04) n = 229, R² = .472, R² (5.358) (.161) 462. 149.38 + 1.93 lexppp – .060 free – 10.78 Imedinc – .397 pctsgle + .667 read4 (3.76) math4 (41.70) (2.82) (.054) (.111) (.042) n = 229, R = .749, R = .743. (i) If you are a policy maker trying to estimate the causal effect of per-student spending on math test performance, explain why the first equation is more relevant than the second. What is the estimated effect of a 10% increase in expenditures per student? (ii) Does adding read4 to the regression have strange effects on coefficients and statistical signifi- cance other than Brexppp? (iii) How would you explain to someone with only basic knowledge of regression why, in this case, you prefer the equation with the smaller adjusted…
- The assumption that is required to shows the efficiency of the OLS estimator, consistency and unbiasedness is: i) Cov(u,,u-;) { A0 ii) Var(u,) =o? iii) E(u,) = 0 iv) u, ~ N(0,0²) a) (i), (ii) and (iii) only b) (i) and (iii) only c) (ii) and (iv) only d) (i), (ii) (iii) and (iv) Answer O A ODAll questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83. Compute to three decimal places. Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W 1.(a). Use the above to calculate the arc price elasticity of demand between PS = $9000 decreasing to PS = $8000. The arc elasticity formula is: 1.(b). Judging from the computation in (a), do you expect the revenue resulting from the decrease in Ps to $8000 to increase, remain the same, or decrease relative to the revenue at Ps = $9000. (Hint: see the table on page 65 of Truett). Explain your choice. 1.(c). Calculate the point elasticity of demand for Smooth Sailing sailboats at PS = $9000 (which should make Qs = 101600). The formula is: 1.(d). Does this elasticity value indicate that Smooth Sailing demand is relatively responsive to changes in the price of these sailboats? Explain…Q4. The Omantel firm has estimate the Sales of fibre internet connections in Oman with the related to advertising expenditure made by the company over the past 26 months. Following is the firm estimated results of the regression equation. DEPENDENT VARIABLE: Y R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 26 0.85121212 8.747 0.0187 PARAMETER STANDARD VARIABLE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 7.6 6.33232 1.200 0.2643969 3.53 0.52228 ? 0.0001428 a. What is the dependent and independent variables in the above regression equation of Omantel firm? b. Calculate the estimated t-ratio. Test the slope estimates for statistical significance at the 10 percent significance level. d. Interpret the coefficient of determination.