Consider a panel data set and the following regression model. What do subscripts i and t refer to? Yit = Bo + B₁Xit + Uit OA. Subscripts i and t identify the time period and entity respectively. B. Subscripts i and t identify the entity and time period respectively. OC. Subscripts i and t identify different time periods. D. Subscripts i and t identify different individuals.
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- (2)What would the consequence be for a regression model if theerrors were not homoscedastic?1. Can you estimate a regression model for Y and X? 2. What are the assumptions of the model in 1? 3. Do you think that this model is accurate? 4. What are the related hypotheses of 37 5. Discuss and interpret your results. Y 4 4 -1 -2 11 -2 -4 0. 3. 7. 12 -3 -6 7. 14What is Regression Model in econometrics?
- What is difference between regression model, and estimated regression equation?In a linear model with the typical equation: Y = B*X+ u, which of the following statements is true? OA. If there is a negative relationship between X and Y, then it means B> 0. OB. The quantitative relationship between X and Y is represented by the term 'u." C. If B<0, then it means there is no relationship between X and Y. D. none of the above.3. The following model is a simplified version of the multiple regression model used by BEST Econometrics Group to study the trade off between time spent sleeping and working to look at other factors affecting sleep: sleep %3D Bo + Bitotwrk + Bzeduис + Взаде + m, where sleep and totwork (total work) are measure in minutes per week and educ and age are measured in years. (i) If adults trade sleep for work, what is the sign of B1? (ii) What signs do you think B2 and ß3 will have? (iii) Using the data in SLEEP75.RAW, the estimated equation is sleep = 3,638. 25-. 148totwrk – 11.13educ – 2. 20age + µi If someone works five hours per week, by how manu minutes is sleep predicted to fall? Is this a large tradeoff? (iv) Discuss the sign and magnitude of the estimated coefficient on educ. (v) Would you say totwrk, educ, and age explain much of the variation in sleep? What other factors might affect the time spent sleeping? Are these likely to be correlated with totwrk?
- 1. An analyst ran a regression with four predictor variables. Variable description Variable Name Salary in R1000.00 Years at company Age in years Education in years SALARY YEARS AGE EDYEARS He suspects that AGE can be dropped from the model and he decided to employ forward stepwise regression. Show all the steps he has to do to get to a fitted response regression without age. 2. BIC, Bayesian information criteria or SBC, Schwarz' Bayesian Criteria, are the same. Give the aquations for AIC and BIC and explain the difference in these two equations in terms of the terms in the equations as well as the consequences. 3. Give a short description of measuring the actual predictive capabilities of the selected regression. model.How Regression models are used for Forecasting purpose?What are the measures of fit that are commonly used for multiple regressions? How can an adjusted R2 take on negative values?
- In multiple regression model: what is it means for a variable to be significant? Explain the meaning of the significant variable.Expedia wants to use regression analysis to build a model for airfare tickets prices in the states: Ticket prices = 30 + B1*Miles + E where Miles is measured in hundreds Coefficients 169.50 5.90 Intercept Miles (in hundreds) Which of the following is true? Standard Error 1.34 0.09 4 t Stat 126.85 61.28 P-value 0.000 0.002 If Miles increases by 1, then we predict ticket price to go up by $5.9. O If ticket price goes up by $1, then we predict Miles to go up by 590 miles. O If ticket price goes up by $100, then we predict Miles to go up by 590 miles. If Miles increases by 100, then we predict ticket price to go up by $5.9.Which of the following is an assumption on which time series regression is based? a. A time series process follows a model that is nonlinear in parameters. b. In a time series process, no independent variable is a perfect linear combination of the others.