Hi just need some help with questions c, d and e. This are the solutions for parts A and B which …

Hi just need some help with questions c, d and e. This are the solutions for parts A and B which will be needed for solving c, d and e, Thanks very much in advance. (NOW UPDATED) Sorry

Part A and B regression:

The variables are defined as follows:

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

voteA = percentage of the vote received by Candidate A

expendA =campaign expenditure by Candidate A (in million dollars)

expendB =campaign expenditure by Candidate B (in million dollars)

prtystrA =a measure of party strength for candidate A (the fraction of the most recent presidential vote that went to A’s party, expressed in percent)

multiple regression generates the following result: Dependent Variable: VOTEA Method: Least Squares Date: 03/15/18 Time: 17:23 Sample: 1 40 Included observations: 40 Variable Coefficient Std. Error t-Statistic Prob EXPENDA EXPENDB PRTYSTRA 80.47166 9.2232278.7248920.0000 1.276232 .466541 -0.870233 0.3899 2.9076940.540867-5.375989 0.0000 0.093120 0.081806 1.138293 0.2625 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.593406 0.559523 4.923050 872.5111 Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion 66.05000 7.417754 6.120373 6.289261 6.181438 2.051466 -118.4075 Hannan-Quinn criter 17.51343 Durbin-Watson stat 0.000000

A) What is the interpretation of the coefficients? Are the slope coefficients individually significant? (Note: use a significance level of 5 percent).

Coefficient of EXPENDA shows that there is a negative relationshipe between percentage of votes recieved by A and expenditure on campaign by A. if EXPENDA increases by 1 unit percentage of votes received by A decreases by 1.28 units.

Coefficient of EXPENDB shows that there is a negative relationship between  percentage of votes recieved by A and expenditure on campaign by B. If EXPENDB increases by 1 unit percentage of votes received by A decreases by 2.91.

Coeffcient of PRTYSTRA shows that there is a posiitve relationship between percentage of votes received by A and measure of party strength for A. If party strength increases by 1 unit, percentage of votes received by A increases by 0.09 units.

Coefficient is significant if its absolute t statistic is greater than critical t statistic of 1.96. Only EXPENDB has t statistic greater than 1.96. So only EXPENDB is statistically significant.

B) We are interested in conducting a joint significance test on expendA and prtystrA. Write down the null and alternative hypotheses of this test. What are the degrees of freedom associated with this test?

let coefficient of expendA be b2 and coefficient of prtystraA be b3.

H0: b2=b3=0

H1: b2 not equal to b3 not equal to 0

degrees of freedom for numerator is 2 which is the number of restriction.

degrees of freedom for denominator is n-k-1 where n is 40, k is the no. of explanatory variables which is 3. degrees of freedom for denominator is 40-3-1= 36.

The researcher runs another regression, which generates the following result: Dependent Variable: ΟΤΕΑ Method: Least Squares Date: 0315/18 Time: 17:25 Sample: 1 40 Included obs ervations:40 Variable Coefficient Std. Error Statistic Prob 79.21087 201 1872 39.37173 0.0000 3.238874 0.458471 7.095471 0.0000 EXPENDB R-s quared Adjus ted R-s quared S.E of regres s ion Sum s quared res id Log likelihood F-statis tic Prob/F-ststis tic) 0.589872 Mean dependent var 0.558552 S.D. dependent var 4.928489 Aake info criterion 923.0 128 Schwarzcriterion 119.5328 Hannan-Quinn criter 50.34570 Durbin-Wat on stat 0.000000 88.05000 7.417754 8.076841 8.161085 8.107173 2210121 (c)(1pt) Now, use the relevant information in the above two regressions and the appropriate F-statistic formula to compute the F-statistic for the test in part (b). (d)(lpt) For the test in part (b), what is the critical value associated with a significance level of 5 percent? (Note: briefly explain how you obtain this result Use the nearest degrees of freedom in the attached statistical table.) Are expendi and prtystr& jointly significant at the 5 percent levelf? (e)(1pt) The researcher computes the squared residuals (denoted as RESIDSQ) using the sample regression line oted-79.210 squared residuals on gxpendB. The estimation result is given as follows: 3.238* apendB. He then regresses the Dependent Variable: RESIDSQ Method: Least Squares Date: 0315/18 Time: 17:30 Sample: 1 40 Included obs ervations:40 Variable Coefficient Std. Error Statistic Prob 18.33412 1385852 1322950 0.1938 1.168802 3.144340 0.371080 0.7128 EXPENDB R-s quared Adjus ted R-s quared S.E. of regres s ion Sum s quared res id Log likelihood F-statis tic Prob/F-ststis tic) 23.07532 33.57172 9936310 10.02075 9986842 2118032 0.003811 Mean dependent var S.D. dependent var 0.022810 33.94913 Aake info criterion 43796.84 Schwarzcriterion 196.7282 Hannan-Quinn criter 0.137700 Durbin-Wat on stat 0.712839 According to the Breusch-Pagan test, is the null hypothesis (i.e., homoskedasticity) rejected? (Note: use a significance level of 5 percent)

multiple regression generates the following result: Dependent Variable: VOTEA Method: Least Squares Date: 03/15/18 Time: 17:23 Sample: 1 40 Included observations: 40 Variable Coefficient Std. Error t-Statistic Prob EXPENDA EXPENDB PRTYSTRA 80.47166 9.2232278.7248920.0000 1.276232 .466541 -0.870233 0.3899 2.9076940.540867-5.375989 0.0000 0.093120 0.081806 1.138293 0.2625 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.593406 0.559523 4.923050 872.5111 Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion 66.05000 7.417754 6.120373 6.289261 6.181438 2.051466 -118.4075 Hannan-Quinn criter 17.51343 Durbin-Watson stat 0.000000

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *