HW3A - Econ 444 Elementary Econometrics (Winter 2010)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Econ 444 Elementary Econometrics (Winter 2010) ANSWERS TO HOMEWORK EXERCISE: 3 1. MULTIPLE CHOICE 1)C 2)A 3)D 2. a. See Eviews output below. 1 b. The sample regression function is : ˆ Y i =- 4 . 855176 + 0 . 916609 X 1 i + 0 . 158596 X 2 i SE = (14 . 54034) (0 . 149560) (0 . 041682) t =- . 333911 6 . 128684 3 . 804880 N = 24 R 2 = 0 . 9424 c. The slope coefficient estimate ˆ β 1 tells us that if we increase labor input by 1 unit then the output will increase by 0.916609 units. The slope coefficient estimate ˆ β 2 tells us that if we increase labor input by 1 unit then the output will increase by 0.158596 units.Both the estimated slope coefficients, ˆ β 1 and ˆ β 2 are positive which make sense : as you increase your inputs your output should increase. d. We wish to test , H : β 1 = 0 against an alternative hypothesis of β 1 6 = 0 at 5% level of significance. This is a two-sided test. From the Eviews output, the t-statistic is given by 6.1286. The next step is to get the critical value,the t-statistic is given by 6....
View Full Document

This note was uploaded on 04/13/2010 for the course ECON 444 taught by Professor Ogaki during the Winter '07 term at Ohio State.

Page1 / 4

HW3A - Econ 444 Elementary Econometrics (Winter 2010)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online