703Assignment6 - Res Ec 703, Assignment Number 6...

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Unformatted text preview: Res Ec 703, Assignment Number 6 Heteroscedastlclty S.4 tnTable .".3 d\e arc tillleseriC$ data on toW cost (C') .nd output (Q) foe . . two 'linnl'; It lshypoth~b:cd that both 'firms" co,t functions IC cubic and can be written as . Table Ill.B Time Series Data ot,. Total 'Cost (0) a.nd Output (Q) .for Two Finns. , finn t: C II =/JI +/J,d211 +/J,Q:' +P4Q~, +eu C, Q. CI' a. 232 3.6S 353 6.99 finn 2: C ll = 11 + 1':2Q2. + rJa:1 + r 4Q~ +e , 293 4.32 240 4:43 564 9.02 271 4.78 where S49. 8.79 323 HI 313 S.II 332 S.39 2t7 2.38 256 U;8. 420 7.19 140 1.35 and ell and.e u are independent of each other and.Qver time. ". . 204 2.08 221 3.17 (a> BsUmate each function using least squares. Report ed eomrneRt.oa. the 733 9.87 418 7.02 . results:. . . 2 169 1.30 292 4.33 (b) Test the hypoti'!esis that H.o: a: = o'~ against tlle alternative th~t HI: 0'1 "" 5S0 9.09 " S82 9.34 o}. Use ~ 10% significance level and note that this is a two-tatled test. 221 1.75 193 1.51 (c) .Estimate -both equaUons jointly &ssumi", that PI ::0 y.. fJz. = 1i; iJJ. = lJ. and 278 4.93 '282 3.68 /1" ::')'4. Oct two sets of estimates, 01lC assuming O'~= 0':. and one 374 6.53 163 1.04 assuming u~ '" u:: Report and comment on the results. 491 8:2.8 326 :4.89 234 2.12 163 9.93 (4) Test the hypothesi~ . 326 5.36 464 7.81 252. 3.14 3S0 S.84 H,:PI=rl. P2=r2 p,=y, p"=.r,, 183 2.09 212 4.33, agaiust 10~ 3.10 208 t.93 280 4.70. 192 1.-41 HI: at least one of the equalities in H' .does not hold SA9 4S9 ~.04 262 214 2.32 2:19 3.30 313 6.78 2<;18 2.34 Do ~s test f.wi~. Fint asS\fl1ling u~ == 0': and then assuming u: '" 0-;. 393. 1.4~ 289 4.13 Comment on the test o~~mes. 237 3.23 340 6.82 44S 7.44 132 1.48 482 . 7!Y.J 434 .7A9 l TG6k 11M Data for BK~ Iii.' 15.7 Table.1S.4 ~ntalils C)bscrvatioBS ali food..cxppnditurc (y,). ~come(xJ. and T. ... .. . Q"fK I ~I' n~bcr of persoBS.in each household (,y.from a ~dom 'sample of38 cz:H4 . $ KASl , hou.seholds in. a large U.S. city. Food ~penditure and blcomc acc.measw:cd 21.1011 'Mm , '1.431 . 19.1$1 iti terms of thousands ofdollars. CoBSider the statistical model . S 11.481 :nc 13.$41 l 14.1&4 19.40( 1Un l lUll .cult (15.5.2.) 2 1 21.141 IUSI i.,.w. J (a) .Test for hcteros~city in the. en"OlS#It usipg. 9.Qt JCS6l 1 14.O(IS , 'UII' 2 (II a Ooldfcld-Quaadt tat with the ObscrvatiOBS ordered accordiDg to -- I t:'fI.I' 2fM2. decreasing valuesofz,,'~ .' . IUS! f'U2S S "~I 'UC .{ill the 8rcuscWagan _ wtih equation 15.5.2 as the altcrQaCtvc. 4 " nm 4',.,,0, hJpothcals.. '. . . i UN nc 1 $ 21.fi.14 IUn . 'COmment-on Chcoutcomes. ' , IItHG !U.$OG 6 2 Wit . "l$9 (b) lJi part (a)(lI) Jou would faa\'Oob~c({lClSt squares estima~ al~ att and "~I 2 lo.IU , ci,. What soca .WfOqlf JOu tly 10 compute estim.a.ted ~~ a: froui I .HI UM9 ' ....
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This note was uploaded on 12/08/2011 for the course ECON 703 taught by Professor Bernardmorzuch during the Fall '10 term at UMass (Amherst).

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703Assignment6 - Res Ec 703, Assignment Number 6...

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