| ECO 310 Econometrics | Dr. Robert Jantzen |
Homework 6
| Statistical Inference: Confidence Intervals, F-tests and t-tests
Objective: Create Confidence Intervals for Regression Coefficients by replicating E.G. 5.2 on pp. 134-135 using the woody3.csv data file. The data file contains information for 33 restaurants on Y (sales), NN (# of nearby competitors), P (local population) and I (average local family income). I. Prep Assignment using the woody3.csv data file. The data file contains information for 33 restaurants on Y (sales), NN (# of nearby competitors), P (local population) and I (average local family income). Note: this data is cross-sectional data, i.e., it's measured across individuals at a point of time. a. Run a regression of Y on NN, P and I. Print out
the regression results.
II. Create Confidence Intervals for the Regression Coefficients by replicating E.G. 5.2 on pp. 134-135. Create 90% confidence intervals for the regression coefficients in your model. Interpret. Note: you can generate these confidence intervals after you have run the ordinary least squares regression by clicking on * Analysis * Confidence intervals for the coefficients *. Click on the a icon to set the confidence level to a value other than 95%. III. Conduct an F-Test on the regression by replicating E.G. 5.6 on pp. 159-163. Show your hypotheses, sample statistic, critical statistic and decision process. Interpret the finding. Also examine the p value and interpret. IV. Conduct t-tests on the regression coefficients by replicating E.G. 5.2 on pp. 128-134. Specifically test whether the constant and NN coefficient are zeros, and whether the other 2 coefficients are positive values. In each case, show your hypotheses, sample statistic, critical statistic and decision process and interpret the findings. V. Examine the p-values of the estimated regression coefficients and interpret. VI: Test whether the regression coefficient on I is greater than
1. Show your hypotheses, sample statistic, critical statistic and
decision process. Interpret the finding.
|