EconHM21 - Q uestion #1 A mong the following, which is NOT...

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Question #1 Among the following, which is NOT a part of a "generalized procedure" for developing a multiple regression model? Proceed with model estimation even if the model lacks a theoretical basis. Draw scatter diagrams to determine whether a linear model is appropriate. Gather data for the variables in the model Proceed with model estimation using statistical software. Question #2 This question is based on the ski resort example again, from pages 85-86 (slides 18-23) of your course packet. This time, you would like to undertake a model building exercise. If you need it again, the data is available here . Since autocorrelation occurs over time, the inclusion of a time variable in the model may correct the problem. So, include a new independent variable 'Years.' You can do this simply by creating a column of serial numbers going 1, 2, 3. ..till however many observations you have. Then run the model again and answer the following questions.
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1. The calculated value of the Durbin-Watson test statistic is 1.884987482 2. Then, based on the upper and lower critical values 1.54 and 1.10, your decision should be: There is no autocorelation, the problem stands corrected. 3. The model is significant as a whole.
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This note was uploaded on 02/11/2010 for the course ECON 203 taught by Professor Petry during the Spring '09 term at University of Illinois, Urbana Champaign.

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EconHM21 - Q uestion #1 A mong the following, which is NOT...

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