Nobody downloaded yet

Econometrics 2 - Essay Example

Comments (0) Cite this document
This paper seek to analyze and identify the factors, both positive and negative factors, affecting the store profits. In addition,…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95% of users find it useful
Econometrics 2
Read TextPreview

Extract of sample "Econometrics 2"

Download file to see previous pages The independent variables on the other hand include; Workers, Population Density, Average Income, Products, Price Levels, Competition, Service Ratings, Location (Central London), and Convenience.
According to the table above, the R Square and the Adjusted R square are above 50%, 0.652 and 0.564 suggesting that they are 65.2% and 56.4% respectively. This means that 56.4% of the independent variables explain the dependent variable (profit levels).
Since the Durbin-Watson, result indicates 2.119, a figure that represents no autocorrelation; therefore, the regression results are reliable and unbiased. The statistical result above can be used effectively in predicting the variations in the profit level at the supermarket group ‘Dodo’.
Walrus is an online bicycle store that sells mainly one product, their ‘tBike’. Another online bicycle store, ‘Shifty’, has recently announced a lasting and substantial reduction in their prices for the next year. The analysis below is aimed at determining whether this is likely to significantly affect their sales of tBikes.
According to the analysis below, tBike Sales is the dependent variable while shifty Price, Average Income, December, and tBike Price are independent variables. The table below summarizes the descriptive statistics.
The model summary below shows the variations and relationship between the dependent and independent variables. According to the table below, the adjusted R squared is 0.729 implying that 72.9% of the independent variables explain the variations of the dependent variable, tBike Sales throughout the period of the data.
Since the Durbin-Watson, result indicates 1.087, a figure that represents no autocorrelation; therefore, the regression results are reliable and unbiased. The statistical result above can be used effectively in predicting the variations in the profit level at ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Econometrics 2 Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Econometrics 2 Essay Example | Topics and Well Written Essays - 1000 Words)
“Econometrics 2 Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



...?Econometrics Regression Model Question A The other hypothesis to be investigated by this regression was weather the level of education of women had an impact on their level of availability or participation in the work place. This was to be monitored using the coefficient educ. The availability and increase of other sources of income for the family was also considered to find out weather the same affected their level of commitment at work. This was done using the variable nwifeinc. The estimated coefficients had the signs as expected and were of statistical significance, this was demonstrated clearly buy the patterns displayed by the respective graphs of the variable coefficients. It therefore demonstrated beyond any...
3 Pages(750 words)Assignment


....6946349 lweight02 | -.1928427 .0676438 -2.85 0.004 -.3255582 -.0601272 lexp | .096436 .0445005 2.17 0.030 .0091272 .1837448 ltenure | .0840076 .011747 7.15 0.000 .0609602 .107055 lhours | .2658989 .0535023 4.97 0.000 .1609288 .3708689 catgov | -.0469187 .034193 -1.37 0.170 -.1140045 .0201672 female | -.2666817 .033851 -7.88 0.000 -.3330966 -.2002669 region | -.0327165 .012845 -2.55 0.011 -.0579181 -.007515 _cons | -2.270849 .4863924 -4.67 0.000 -3.225139 -1.31656 ------------------------------------------------------------------------------ 2. Explanation of Constructed Variables logearnings = log(earnings) the ‘l’ prefixes on the independent variables indicate natural logs. For example, ls = log(s), ltenure =...
3 Pages(750 words)Essay

Econometrics the dependent variable are explained by changes in the independent variables. Including an insignificant variable as one of the independent variables may minimize the effects of the actual variable causing the variation in the independent variable. Like in the example above, if truly age is not a determinant of income as stated in equation 1, then including it like in equations 2 and 3 will minimize the actual effects of education on income. BIBLIOGRAPHY Greene W. H. (2003). Econometric Analysis. Fifth Edition. Prentice Hall. Pearson Education International. Anderson D. R., Sweeney D. J., Williams T. A. (2005). Statistics for Business and Economics. Ninth Edition. Thomson...
3 Pages(750 words)Essay


...method and there may be competing candidates to describe a series. To achieve stationarity or remove trend two techniques are usually applied. The first one involves fitting either a parametric model or a spline function. In this case the ARMA model is applied to the residuals. Alternatively, Box and Jenkins recommended taking suitable differences of the process to achieve stationarity. Here the assumption is that the original series is ARIMA and the difference gives rise to the ARMA series. To determine whether the series has been reduced to a stationary series, one may look at the autocorrelations. For a stationary series, the autocorrelation sequence would converge to 0 quickly as lag increases. The time plot given in Figure...
5 Pages(1250 words)Assignment


...ECONOMETRICS PART Question a) From table the correlation coefficient between health status and years of education is 0.33. When the correlation coefficient in absolute values is between 0.1 and 0.5, there is a weak correlation between the variables and when the values are between 0.5 and 0.9 there is a strong correlation. In this case, there is a weak positive correlation between the two variables. Since the coefficient is positive, there is a positive linear relationship between health status and years of education. When years in education increase, there is an improvement in health status of the individual. Question 1 (b) i. Number of doctor visits and gender The results of the regression are demonstrated in table...
16 Pages(4000 words)Essay

Econometrics Finance and Accounting Econometrics Question Model2 (Model 2) read = 419.7 – 18.6 * noroom – 50.0 * noeng + 29.4 * fiction N = 11984, R2 = 0.204 (1.7) (2.6) (3.1) (0.6) Interpretation of the coefficient for noroom Because noroom is one of the continuous variables, its coefficient is represented by -18.6 which is a constant. If the value of noroom increases, the model value reduces Hypothesis test In order to test for the hypothesis, we use t test as follows t = (1.7-2.6)/(3.1/SQRT(18.6)) = The t score is less than 0.5 at the 5% significance level (Dougherty, 2008). This confirms the null hypothesis, that the parameter is -20 against the alternative hypothesis that the parameter is greater than...
3 Pages(750 words)Coursework


...Question 3 Use the data set shorttbills.wf1. Limit the sample so that it begins in 2002. Regress the three month treasury bill rate (tb3ms) on the lagged three month rate and the twice lagged 6 month rate (tb6ms(-2)). Do the coefficients make much sense? (Okay, explain why they don’t.) Test, at the 1% level, for first-order serial correlation using the Breusch-Godfrey test. Now run the regression correcting for serial correlation by including AR(1) in the regression. Do the coefficients make sense now? Correct for second order serial correlation (add AR(1) and AR(2)). How about the coefficients now? The regression output looks like Dependent Variable: TB3MS Method: Least Squares Date: 09/17/12 Time:...
1 Pages(250 words)Assignment


... Econometrics Question Required coefficients in the estimate table become evident through writing of the needed estimates using the fitted model, μ12 will be = (ΣkY12k)/n12 = (Σkμ)/n12 + (Σkα1)/n12 + (Σkβ2)/n12 + (Σkαβ12)/n12 + (Σkε12k)/n12 We then assume that averages of the errors in this context are zero (εijk): = μ + α1 + β2 + αβ12 Question 2 In the same way, the mean in table 1 will be: μ11 = μ + α1 + β1 + αβ11 Getting the estimates of table 1 mean, add the estimates at μ, α1, β2, and αβ12. Achieving this goes by multiplying the solution vector with a vector coefficients (e.g. Sum-product) Solution for Coefficient estimates Effect a b Estimate Standard Error DF t Value Pr > |t| Intercept     21.6100 0.2958 72 83.21 <.0001 a 1... ...
3 Pages(750 words)Assignment


...Lecturer’s and Number Submitted Econometrics In an influential article, ‘‘Hedonic Housing Prices and the Demand for Clean Air," David Harrison and Daniel Rubinfeld study the impact of improvements in air quality on local citizens as reflected through differences in housing prices. A simplified version of their model, which is to be studied, is ln(MVi) = β0 + β1RMi + β2 ln(DISi) +β3NOXi + β4DCHAS;i + Ɛi , (1) where the level of observation is the census tract. Further, MVi is the median housing price (measured in $1,000) for a given census tract in the Boston metropolitan statistical area. RM is the average number of rooms in owner occupied housing in the census tract; DIS is a weighted...
2 Pages(500 words)Assignment


...Applied Econometric paper s Affiliation Introduction This paper gives answers to certain questions regarding a study by Acemoglu, Johnson & Robinson (2001): Colonial Origins of Comparative Development. In their study, they claim that countries with quality institutions and secure property rights appear to have higher economic growth than their counterparts. From the econometric model adopted by Acemoglu, Johnson & Robinson (2001), the following questions will be answered appropriately. Question 1 The coefficient estimate (β1) measures how economic growth increases due to the increase in institutions ` quality. Therefore, economic growth will increase by 43% whenever the quality of institution increases...
11 Pages(2750 words)Speech or Presentation
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Econometrics 2 for FREE!

Contact Us