AAMBC

Econometrics Individual Assignment I

Department ACF sec 1 & sec 2
4th year Extension Students
Submission Date 15/04/2016 Ec Max Mark 15 %
Assume consumption (Y) and Income of the households (X)
n = 10 ∑ Y i=96 ∑ X i=80 ∑ X i Y i =789 ∑ X 2i =668 ∑ Y 2i =952
Part I calculate the following deviation forms
1. ∑ yi
2. ∑ xi
3. ∑ xi yi
4. ∑ x 2i
5. ∑ yi2
Part II Estimate the following
1. βˆ1 (Interpret the result)

2. βˆ o (Interpret the result)

3. Var (βˆ o)

4. Var (βˆ 1)

5. Se (βˆ o)

6. Se (βˆ 1)
7. R2 (Interpret the result)
Part III Test the hypothesis that income influence consumption at
1. 90% CI
2. 95% CI
3. 99% CI