SRM Presentation

GROUP 3
 Cross Section Data
Equation Intercept Slope 1 Slope 2 Slope 3 R^2

Linear 8.755 -0.05     0.026

Sig Level (<0.001) (0.443)     

Quadratic -4.078 0.967 -0.16   0.593

Sig Level (0.142) (<0.001) (<0.001)   

Cubic Sig -16.166 2.561 -0.073 0.001 0.768

Level (<0.001) (<0.001) (<0.001) (<0.001) 

Log-Linear 0.341 0.299     0.047

Sig Level (0.395) (0.296)     

Trend  7.18  0.014      0.000

Sig Level  (0.001) (0.917)      

Semi-Log  3.386  3.944      0.094

Sig Level  (0.226)  (0.135)      

Dependent (Y) – Happiness, Independent (X) – Hours spent working per week
Cross section data

 Null Hypothesis: No relationship between the dependent and independent variable

 Alternate Hypothesis: Dependent and independent variable are related
 R squared is the goodness-of-fit model and measures the strength of the relationship
between your model and the dependent variable on a convenient 0 – 100% scale.

Linear: Estimated happiness level = 8.755 - 0.05(hours spent working per week)
Quadratic: Estimated happiness level = -4.078 + 0.967*(hours spent working per week)-
0.16*(hours2)
Cubic: Estimated happiness level = -16.166 + 2.561*(hours spent working per week)-
0.073*(hours2) + 0.001*(hours3)
 Time Series Data
Equation Intercept Slope 1 Slope 2 Slope 3 R^2
Linear 37.031 0.001    0.983
Sig Level (<0.001) (<0.001)      
Quadratic 27.385 0.001 -1.35E-09  0.994
Sig Level (<0.001) (<0.001) (<0.001)    
Cubic 25.827 0.001 -2.18E-09 2.42E-15 0.995
Sig Level (<0.001) (<0.001) (0.11) (0.53) 
Log-Linear -0.719 0.55    0.992
Sig Level (<0.001) (<0.001)      
Trend -11586.578 5.814    0.957
Sig Level (<0.001) (<0.001)      
Semi-Log -54.877 0.028    0.985
Sig Level (<0.001) (<0.001)      

Dependent (Y) – Consumer Price Index (CPI),

Independent (X) – Gross Domestic Product (GDP)
 Time Series Data

• Null Hypothesis: No relationship between the dependent and independent variable

• Alternate Hypothesis: Dependent and independent variable are related
• R squared is the goodness-of-fit model and measures the strength of the relationship
between your model and the dependent variable on a convenient 0 – 100% scale.

Linear Estimated CPI = 37.031 + 0.001(GDP)

Quad Estimated CPI = 27.385 + 0.001(GDP) - 1.35E-09(GDP^2)
Cubic Estimated CPI = 25.827 + 0.001(GDP) - 2.18E-09(GDP^2) + 2.42E-15(GDP^3)