Unit 10 ECONF16 (assignment)

Unit 10 ECONF16 (assignment) - Name Scott Ly JHUAdvanced...

This preview shows page 1 - 3 out of 15 pages.

Name: Scott Ly __________________________________________ JHU—Advanced Academic Programs Graduate Program for Applied Economics Econometrics 440.606.82 Fall 2016 HW—UNIT #10 DUE SUN November 20 by 11:59PM (EST) Please read each question carefully and answer it completely. Please copy/paste software output to the end of the assignment, in an Appendix, and use the information from your output to answer these questions. Unless you are given a different value, please use α = 0.05 in your hypothesis tests. IMPORTANT: Please note that the questions for this assignment, with the exception of #4, are taken directly from the textbook meaning you should complete ALL PARTS of the question as written in your textbook in addition to any notes I have added specific to our course [see below]. I have not “cleaned up” these data sets, although I have in some cases renamed them, which means that there are variables that you may not be using to answer these questions. #1. Chapter 10, C2 [p. 377] using the “barium data set,” [called BARIUM.RAW in the question]. Make sure you include all the necessary discussions, although your discussion may be brief. Notes for working this question: (i) please report your estimated model before you discuss the rest of the question (you do not have to formally hypothesis test to discuss the significance of the individual variables/trend); Once a time-trend variable is added the regression model takes the following form: ^ log ( chnimp )=− 2.37 + .012 t .686 lchempi + .466 lgas + .078 lrtwex + .090 befile 6 + .097 affile 6 .352 afd The only statistically significant independent variable is the time-trend variable. All other variables are very insignificant at interesting levels of significance. (ii) please conduct a formal “four step hypothesis” for this F-test. You can run this F-test in STATA and do not have to do it “by hand;” F-test Step #1 Ho : β lchempi = β lgas = β lrtwex = β befile 6 = β affile 6 = β afdec 6 = 0 Ha : At least one≠ 0 Step #2 1
Image of page 1

Subscribe to view the full document.

This hypothesis test is based on the F- distribution with 6, 123 degrees of freedom. α = 0.05 Reject the Ho if the F-test statistic is > 2.17 and p-value < 0.05. EXCEL command for critical value: =F.INV.RT(0.05,6,123) Step #3 F = 0.54 p-value = 0.7767 Note: The p-value was found in STATA using the test command Step #4 Since .054 <2.17 BUT 0.7767> 0.05 We Fail to Reject Ho; meaning that all other variables are jointly insignificant and that t is the only independent variable explaining lchnimp .
Image of page 2
Image of page 3

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern