The regression was run on quarterly data over 70 observations. It found that demand for brokerage services (B) is negatively correlated with price of services (P) and positively correlated with number of brokers (S). The model has good fit (R^2 = 0.76) but shows signs of autocorrelation (DW=1.57) and heteroscedasticity based on the White test statistic. The student would test for normality using the Jarque-Bera statistic.
The student estimated a multiple regression on household food expenditure using income and household size as predictors. The model has very good fit (R^2 = 0.98) and both predictors are statistically significant based on high t-
The regression was run on quarterly data over 70 observations. It found that demand for brokerage services (B) is negatively correlated with price of services (P) and positively correlated with number of brokers (S). The model has good fit (R^2 = 0.76) but shows signs of autocorrelation (DW=1.57) and heteroscedasticity based on the White test statistic. The student would test for normality using the Jarque-Bera statistic.
The student estimated a multiple regression on household food expenditure using income and household size as predictors. The model has very good fit (R^2 = 0.98) and both predictors are statistically significant based on high t-
The regression was run on quarterly data over 70 observations. It found that demand for brokerage services (B) is negatively correlated with price of services (P) and positively correlated with number of brokers (S). The model has good fit (R^2 = 0.76) but shows signs of autocorrelation (DW=1.57) and heteroscedasticity based on the White test statistic. The student would test for normality using the Jarque-Bera statistic.
The student estimated a multiple regression on household food expenditure using income and household size as predictors. The model has very good fit (R^2 = 0.98) and both predictors are statistically significant based on high t-
Where B is the demand for brokerage services, P is the price of the
services and S is the total number of brokers and all variables are in logarithms (standard errors in parentheses). DW is the Durbin- Watson statistic. White is White’s Test. i) Comment on the specification of the above model ii) Compute the t-ratios iii) Does the above regression suffer from first order autocorrelation? If so how might this have arisen? iv) Does the model suffer from heteroscedasticity? Explain v) Explain how you would test for normality assumption using Jaque-Bera(JB) statistic 15. A student wanted to assess the effect of households’ income and household size on food consumption expenditure. He obtained survey data on weekly households’ food consumption expenditure, weekly households’ income (both in USD) and household size based on a sample of ten (10) households. Using STATA he estimated a multiple linear regression with food consumption expenditure as a dependent variable, and obtained the following results:
estimate, Std. Err. = Standard errors, df = degrees of freedom. i. Provide a report on these results. Make sure that your report includes interpretation and explanation on coefficient estimates and their magnitude, t-statistic, p-values, standard errors and R- squared.