compex241b

Compex241b - University of California Dept of Economics D Steigerwald Economics 241B Matlab Problems Question 1 This exercise studies the effect of

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Dept. of Economics D. Steigerwald Economics 241B Matlab Problems Question 1 This exercise studies the effect of terrorist acts on the tourism of Country A. Artificial data has been simulated, and can be found on the class website. The data set is organized as follows: Column Variable Description 1 TOUR t The number of tourists that visited Country A in month t 2 SUM t Summer month dummy variable (1 = summer month, 0 = non-summer month) 3 TERROR t The number of terrorist attacks in Country A during month t 4 TERROR t-1 The number of terrorist attacks in Country A during month t-1 5 HOTEL t The average daily hotel rate for Country A in month t Consider the population model t t t t t t u HOTEL TERROR TERROR SUM TOUR + + + + + = 4 1 3 2 1 0 β . a) Briefly discuss whether or not the classical OLS assumptions are credible in this model. d) Test the individual hypotheses that the coefficients are equal to zero. Test the hypothesis that terrorist acts do not influence the number of tourists who visit Country A.
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This note was uploaded on 12/26/2011 for the course ECON 241b taught by Professor Staff during the Fall '08 term at UCSB.

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Compex241b - University of California Dept of Economics D Steigerwald Economics 241B Matlab Problems Question 1 This exercise studies the effect of

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