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    longphan108
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    The Jarque-Bera (JB) test results show that: 1) The skewness is -0.04008 and kurtosis is 3.1696 2) The JB test statistic is 0.036659 which falls within the acceptance region of 0 to 5.99 3) The p-value is 0.981 which is greater than the significance level of 5% Therefore, the null hypothesis that the residuals are normally distributed cannot be rejected, implying that the OLS assumptions are satisfied and the estimates from the previous t-tests and F-tests are valid.

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    The Jarque-Bera (JB) test results show that: 1) The skewness is -0.04008 and kurtosis is 3.1696 2) The JB test statistic is 0.036659 which falls within the acceptance region of 0 to 5.99 3) The p-value is 0.981 which is greater than the significance level of 5% Therefore, the null hypothesis that the residuals are normally distributed cannot be rejected, implying that the OLS assumptions are satisfied and the estimates from the previous t-tests and F-tests are valid.

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    36 views2 pages

    Question 13

    Uploaded by

    longphan108
    The Jarque-Bera (JB) test results show that: 1) The skewness is -0.04008 and kurtosis is 3.1696 2) The JB test statistic is 0.036659 which falls within the acceptance region of 0 to 5.99 3) The p-value is 0.981 which is greater than the significance level of 5% Therefore, the null hypothesis that the residuals are normally distributed cannot be rejected, implying that the OLS assumptions are satisfied and the estimates from the previous t-tests and F-tests are valid.

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    Question 13: Test the assumption of normality in the residuals of the selected model in question 12 by using the Jarque-Bera

    (JB) test. Comment on the implications of your JB test results on the properties of the OLS estimator. Using the Jarque-Bera (JB) for testing the assumption of normality in the residual. Based on question 12, the functional form I choose is linear, using Eview we get:
    12

    10

    Series: RESID02 Sample 1 25 Observations 25 Mean Median Maximum Minimum Std. Dev. Skewness Kurtosis Jarque-Bera Probability
    -750 -500 -250 0 250 500 750 1000

    3.64e-13 -41.21865 826.1758 -869.7438 383.3350 -0.040080 3.169609 0.036659 0.981837

    0 -1000

    From graph above, we have Skewness (S)=- 0.04008 and Kurosis (K)=3.1696 1. Test for the hypothesis: H0: the model is normal distributed H1: H0 false 2. Test ( )

    )= 0.03665

    3. Decision rule A.R.= [0, ] = [0, 5.99]

    JB belongs to A.R. we accept H0. The model is normal distributed. 4. P-value =0.981 > =5%we accept H0. The model is normal distributed. Therefore, from the JB test result, we can say that the t-test and F-test we have before all are correct because the residuals are normal distributed.

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