HW 4 - a. Present a scatterplot of the residuals from your...

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_____________________________________________________________________________________________ BUSI 410 - Homework #4 Due 11/12/2009 There are two problems in this assignment. Both problems are from the text book. Each of these problems has multiple parts. Below are the two problems, plus any modifications to the statements of these problems in the book. 1) Case 4-2: GM Revenue Forecast (pp. 131-132). In addition to answering the questions on p. 132, please answer the following question: f. Present a scatterplot of the residuals from your regression. Are the residuals homoskedastic*? Are the residuals approximately normally distributed? * homoskedastic is the opposite of heteroskedastic. 2) Assignment 4-1 Impact of Defense Spending on Economic Growth (p 133). Instead of writing up the report mentioned in the assignment, please provide answers to the following questions:
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Unformatted text preview: a. Present a scatterplot of the residuals from your regression. Are the residuals homoskedastic? Are the residuals approximately normally distributed? b. At any reasonable level of significance, is past quarter defense spending a driver of GDP? c. What percent of variation in GDP can be explained by variation in past quarter defense spending? d. What is the margin of error in forecasts of GDP from past quarter defense spending? e. With 95% certainty, how much does expected GDP change with a $1 billion increase in past quarter defense spending? The datasets for both problems are on Blackboard. Note on submission : Your submission should only include responses to the individual questions in the above two problems. Please include the regression analysis output in your submission, but no other data/residuals....
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