{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

HW4A - Econ 444 Elementary Econometrics Fall 2007 ANSWERS...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 444 Elementary Econometrics Fall 2007 ANSWERS TO HOMEWORK EXERCISE: 4 (a) The results are ˆ Y i = - 143 . 94+ 0 . 946 X i (0 . 003) t = 281 . 498 N = 242 , R 2 = 0 . 997 (e) For the regression in part (c) ˆ Y i = 63 . 970+ 0 . 864 X i (0 . 009) t = 100 . 486 N = 41 , R 2 = 0 . 996 For the regression in part (d) ˆ Y i = 0 . 122+ 0 . 969 X i (0 . 009) t = 111 . 999 N = 41 , R 2 = 0 . 997 (f) When real disposable income is zero, the expected real consumption is estimated to be -143.94 billions of dollars (in terms of year 2000). The sign of the intercept does not make sense. (g) When real disposable income increases by 1 billion dollar, expected real consumption is estimated to increases by 0.946 billion dollars (in terms of year 2000). The sign of the slope coefficient makes sense. Because it is smaller than one, the magnitude makes sense. (h) The t -value is 68.889. The critical values for 10%, 5%, and 1% levels are approximately 1.645, 1.960, and 2.576 for the large sample size of 242. Since the t -value is larger than the critical values, we reject the null hypothesis at each level.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

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