Interactive Regression Learning Assignment Using Eviews
Autor: Sara17 • February 14, 2018 • 903 Words (4 Pages) • 475 Views
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- Comment:
- Theory: The temperature is relevant to the demand for water. For example, people tend to bath more usually in the summer than in the winter. The higher the temperature, the more water consumed.
- t-Test: t-value of T is significant from zero (1.5).
- Adjusted R-square: Slightly decreases by 0.01 when T is omitted.
- Bias: None of the estimated slope coefficients changes significantly when T is added.→ We should not eliminate T from the equation.
4. Regression Run #4: Remove R, holding others constant
[pic 5]
INT
POP
T
R
PR
Y
CO
β-head
53.8
-0.45
0.99
-132.2
2.01
-5.44
SE
0.50
0.61
76.4
0.97
5.24
t
-0.91
1.62
-1.73
2.07
-1.04
Adjusted R-square: 0.78
- Hypothesis testing:
Coefficient of
POP
T
PR
Y
CO
Hypothesized sign
+
+
-
+
-
t-value
-0.91
1.62
-1.73
2.07
-1.04
Critical value = 1.725
Do not reject
Do not reject
Reject
Reject
Do not reject
- Comment:- Theory: The amount of Rain is relevant to the demand for water. The more rains are, the less demand for water.
- t-Test: The sign of R is as expected and t-value of R is significant from zero
- Adjusted R-square: Decrease when R is omitted.
- Bias: Y change significantly when R is omitted.→ We should not eliminate R from the equation.
5. Regression Run #5: Remove PR, holding others constant
[pic 6]
INT
POP
T
R
PR
Y
CO
β-head
-38.6
0.47
0.74
-0.36
0.28
-9.63
SE
0.14
0.52
0.10
0.13
3.62
t
3.31
1.42
-3.49
2.2
-2.7
Adjusted R-square: 0.85
- Hypothesis testing:
Coefficient of
POP
T
R
Y
CO
Hypothesized sign
+
+
-
+
-
t-value
3.31
1.42
-3.49
2.2
-2.7
Critical value = 1.725
Reject
Do not reject
Reject
Reject
Reject
- Comment:
- Theory: It can be thought that the increase in price of water may reduce the demand for water. But in reality, water is an essential resource for human life. People’s need for water would remain the same no matter how the price is.
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