STATA2 - Max Haubold ECON 570 STATA #2 4/7/2011 1) The...

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Max Haubold ECON 570 STATA #2 4/7/2011 1) The variables have been created. 2) Estimated model for year 1978 is E(ln_price) = 7.27788 -0.00852*age + 0.00003760*agesq -0.04354*ln_dist_bus -0.05761*ln_dist_hw +0.06263*rooms +0.37820*ln_area + 0.11924*ln_land +0.06353*baths +0.03301*ln_dist_incin Estimated model for year 1981 is E(ln_price) =7.63012 -0.00859*age + 0.00004746*agesq -0.10110*ln_dist_bus +0.01555*ln_dist_hw +0.02511*rooms +0.31473*ln_area + 0.07937*ln_land +0.14601*baths +0.11704*ln_dist_incin Here we are comparing two variances. So here we can use Snedecor’s F test. This test can be also be looked as Goldfeld – Quandt test if we drop the middle group and allow the first and third group to be of different sample size. Residual Sum of square obtained from fitting model for 1978 is 7.62976 and it has 178 - 9 = 169 degrees of freedom. So, Estimate of residual variance from year 1978 is 7.62976/169 = 0.04514651 Residual Sum of square obtained from fitting model for 1981 is 5.24663 and it has 141 - 9 = 132 degrees of freedom. So, Estimate of residual variance from year 1981 is 5.24663 /132 = 0.0397472 Therefore the test statistic is Under H 0 , this test statistic is distributed as F(169, 132). The p-value of this test is 0.2221144.
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Since the p-value is greater than 0.10, We cannot reject H 0 either at 1% or 5% or 10% level of significance. 3)
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This note was uploaded on 11/18/2011 for the course ECON 570 taught by Professor Staff during the Fall '08 term at UNC.

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STATA2 - Max Haubold ECON 570 STATA #2 4/7/2011 1) The...

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