212ECN SUMMER 2010 Coventry University power of Business, Environment and Society 212ECN economical & Financial Modelling INSTRUCTIONS TO CANDIDATES fourth dimension totallyowed 2 hours You MUST pass on both questions in factor A and then all Question 3 or 4 in power B For this examination you will be supplied with the following: Statistical tables You whitethorn take this exam piece away at the passing of the examination: please hold the line it in a ripe place for future reference _____________________________________________________ 1 Continued... 212ECN unwrap A 1. Question 1 You ar presented with the following results from a sum up of regression toward the means. The following questions refer to the Tables I and II. The variables are Ho apply Expenditure, liquid Income (DY) & Retail Price index (RPI) Table I OLS, using observations 1948-1990 (T = 43) Dependent variable: lifetime accommodations Coefficient Std. Error t-ratio 47893.3 2233.06 21.4474 0.11569 0.00439485 26.3240 103908.4 8.08e+08 0.944138 692.9524 -421.1264 849.7753 0.861024 p-value regression is smash than just a final (15 marks) ii) The residuals have a lopsidedness of 1.1384 and an excess kurtosis of 2.1531. are they commonly distributed? Detail the test statistic for this.
H0: unremarkably distributed ( ) H1: not commonly distributed ( ) 2 2 JB = 188/6*(1.1184 + 2.1531 /4) = 76.92 > 5.99 = ?2(2)5% -> decimate H0 -> residuals are not normally distributed (5 marks) iii) What approach to the regression capacity you use to deal with the autocorrelation exhibited by the model? develop the mental process full. Lecture notes (20 marks) 5 Continued... 212ECN iv) What supplementary tests would you headstone a picture to effect in light of results of the regression above? rationalise the tests fully and any corrective measures you might take. t, heteroskedasticity, structural break, multicollinearity, RESET, etc. (30 marks) v) Explain the economic significance of the coefficients. Are they as you would express from economic theory? Fisher possible action;...If you want to pound a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper