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Assignment No4

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Ngân Trần
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4 views

Assignment No4

Uploaded by

Ngân Trần
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Below is the regression analysis involving dataset for U.

S incomes and consumption from


1959 to 1994:

Source | SS df MS Number of obs = 36


-------------+---------------------------------- F(3, 32) =
Model | 3 10419678.1 Prob > F =
Residual | 32801.576 1025.04925 R-squared =
-------------+---------------------------------- Adj R-squared =
Total | 31291836 35 Root MSE =

------------------------------------------------------------------------------
ct | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
yt | .6672306 .0175772
wages | .0149913 .0528814 0.28 0.779 -.0927247 .1227072
prdefl | 1.465204 2.301156 0.64 0.529 -3.222098 6.152505
_cons | -138.3008 53.22579 -2.60 0.014 -246.7182 -29.88343
------------------------------------------------------------------------------

Where:
✓ Ct: real consumption expenditure (billions of 1992 dollars)
✓ Yt: gross domestic product (billions of 1992 dollars)
✓ Wages: total compensation of employees (current $ billions)
✓ Prdefl: Implicit price deflator for consumption, 1992=100
✓ _cons: constant

a. Formulate the regression equation describing the relationship between these variables.
Identify the independent variable(s) and the dependent variable(s).
b. What is the interpretation of the intercept term in the regression equation?
c. What is the interpretation of the slope term(s) in the regression equation?
d. Which measure(s) describe how well the model predicts the dependent variable?
e. Compute the variance of wages. = se^2
f. Compute the confidence interval of Yt.
g. Is the coefficient of Yt statistically significant at the 5% level?
h. What is the MSS of the model?
i. What is the Root mean squared error (RMSE) of the model? =căn 2 (RSS/(n-k))
j. Compute R2 and Adjusted R2 of the model?
k. What is the degree of freedom (df) of RSS?
l. Compute the mean sum of squares (MS) of the model.
m. Is the model is statistically significant at the 5% level?

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