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Unformatted text preview: th mean zero. The provided data file, vacation.xls, contains a sample of 200 Chicago households. Analyse the data using Gretl and answer the questions. (1) Before estimating the model, what are the expected signs of the coefficients? (2) Estimate the model using the OLS method and provide a summary report and comment on the results. (3) The distance a family travels for vacation may not be a simple monotonic function of age. It may increase until a certain age and then decrease. Modify the model to account for such behaviour and estimate it. Test if such a modification of the model is really necessary for the current data. Provide (a) possib...
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