Assignment3_Template_2011

# Assignment3_Template_2011 - these data we can reject the...

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Finance 271 Financial Modeling & Econometrics Assignment Student ID : G33041692 Each observation in the accompanying dataset contains three numeric variables (Time, Y, and X in that order) separated by blanks. Assume that these data represent a random sample from the population. For the following questions, consider a Lin-Lin regression model in which Y is regressed on Time and X. 1. After controlling for X, a 1-unit increase in Time is associated (on average) with a -24.77613-unit change in Y. 2. The predicted value of Y for an observation with a Time value of 1975 and an X value of 1200 is 102.424. 3. The residual value of observation number 3 (the observation with a Time value of 1975) is 11.3730. 4. Time uniquely accounts for 13.76% of the variation in Y. 5. Our best estimate of the population coefficient of determination is 0.8937. 6. If we hypothesize that X is positively related to Y after controlling for Time, based on
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Unformatted text preview: these data we can reject the null hypothesis. 7. If we hypothesize that X is positively related to Y after controlling for Time, based on these data we can accept the alternative hypothesis. For the following questions, consider regression model in which Y varies linearly with Time and with the Log of X. 8. Controlling for Time, a 3-percent increase in X is associated (on average) with a 26.132-unit change in Y. 9. Controlling for Time, the lower bound on a 95% confidence interval for the partial regression coefficient associated with X is 192.78835. For the following question, do not include Time in the analysis. 10. Consider a regression model in which Y varies as a polynomial function of X. If we know that the polynomial is less than degree 6, is the highest degree needed to optimally fit these data (based on minimizing the adjusted r-squared) is 4....
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