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Assignment
Assignment
Dependent Variable: X1 Method: Least Squares Date: 04/08/10 Time: 23:11 Sample: 1959 1997 Included observations: 39 Variable C Y1 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood Durbin-Watson stat Coefficient 57.54843 0.442950 0.886090 0.883011 5.453057 1100.226 -120.4629 0.075899 Std. Error 1.636431 0.026109 t-Statistic 35.16703 16.96519 Prob. 0.0000 0.0000 81.02821 15.94292 6.280150 6.365461 287.8175 0.000000
Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic)
Estimation Equation:
X1 = C(1) + C(2)*Y1
Interpretations:
C(1) = C(1) is the intercept and its value 57.54843 is constant or fix. It is the value of Dependent Variable (X1), when all the other variables are taken as constant or zero. C(2) = C(2) is the coefficient. It explains that if there is 1 unit change in Independent Variable (Y1) there will be 0.44295053 units change in the Dependent Variable (X1) in the same direction.
R-Squared:
R-square means that 88% of the change or variation in X1 (Dependent Variable) is due to change in Y1 (Independent Variable). Or 88 % of change in X1 variable is explained by change in Y1 variable.
Non-Business Sector
Dependent Variable: X2 Method: Least Squares Date: 04/08/10 Time: 23:33 Sample: 1959 1997 Included observations: 39 Variable C Y2 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood Durbin-Watson stat Coefficient 60.86381 0.410943 0.878025 0.874728 5.228151 1011.342 -118.8203 0.071519 Std. Error 1.580995 0.025180 t-Statistic 38.49715 16.31992 Prob. 0.0000 0.0000 82.75128 14.77138 6.195913 6.281224 266.3398 0.000000
Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic)
Estimation Equation:
X2 = C(1) + C(2)*Y2
Interpretations:
C(1) = C(1) is the intercept and its value 60.86381 is constant or fix. It is the value of Dependent Variable (X1), when all the other variables are taken as constant or zero.
C(2) = C(2) is the coefficient. It explains that if there is 1 unit change in Independent Variable (Y1) there will be 0.410943 units change in the Dependent Variable (X1) in the same direction.
R-Squared:
R-square means that 87% of the change or variation in X2 (Dependent Variable) is due to change in Y2 (Independent Variable). Or 87 % of change in X2 variable is explained by change in Y2 variable.