Search
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.

# Intermediate Econometrics - Coursework Example

Summary
The answer is FALSE; adding one explanatory variable to the linear model may either increase or decrease the adjusted R-squared depending on how useful the explanatory variable is to the model. The adjusted R-squared will only increase if the explanatory variable is useful in…

## Extract of sample"Intermediate Econometrics"

The answer is FALSE; in loglinear regression analysis is used to describe the pattern of data in a contingency table. A model is constructed to predict the natural log of the frequency of each cell in the contingency table. For a 2x2 table, that means the model is . So we can always say, as a simple function, that the coefficient represents an increase in the log of predicted counts. If , for instance, we could say that this model shows that factor increases the predicted log count by 2 (all other factors held constant).
The answer is TRUE; all the three tests (Wald test, Lagrange Multiplier, Likelihood ratio test) address the same basic question, which is, does constraining parameters to zero (i.e. leaving out the predictor variables) reduce the fit of the model? The null hypothesis for all three tests is that the smaller model is the "true" model, a large test statistics indicate that the null hypothesis is false. The only difference between the tests is how they go about answering that question. The graph below explains more on the relationship;
The graph below illustrates what each of the three tests does. Along the (labelled ) are possible values of the parameter . Along the are the values of the log likelihood corresponding to those values of a. The test compares the log likelihoods of a model with values of the parameter constrained to some value to a model where  is freely estimated. It does this by comparing the height of the likelihoods for the two models to see if the difference is statistically significant (having in mind, higher values of the likelihood indicate better fit). In the figure above, this corresponds to the vertical distance between the two dotted lines. In contrast, the Wald test compares the parameter estimate  to ; where  is the value of  under the null hypothesis, which generally states that . If  is significantly different ...Download file to see next pagesRead More
Cite this document
• APA
• MLA
• CHICAGO
(“Intermediate Econometrics Coursework Example | Topics and Well Written Essays - 2000 words”, n.d.)
Intermediate Econometrics Coursework Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/statistics/1633188-intermediate-econometrics
(Intermediate Econometrics Coursework Example | Topics and Well Written Essays - 2000 Words)
Intermediate Econometrics Coursework Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/statistics/1633188-intermediate-econometrics.
“Intermediate Econometrics Coursework Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/statistics/1633188-intermediate-econometrics.
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Developing a Performance Measurement System for a Firm That Purchased a Supplier of Its Intermediate Goods
Developing a Performance Measurement System for a Firm That Purchased a Supplier of Its Intermediate Goods In a decentralized organization, most of the decision-making resides in its separate or individual subunits. In such a case, the management control system generally utilizes transfer prices to coordinate the subunits’ actions and to assess their performance.
2 Pages(500 words)Coursework
Intermediate Microeconomic problem set section A & B
Nash equilibrium is a term used to describe a position where strategies taken by the players are at optimal point, given the moves taken by other players in the game. In Nash equilibrium, no industry or individual is in preference of a different choice. This means that each player chooses the best strategy given the approaches taken by the other players in the market (Kelly, 2003).
4 Pages(1000 words)Coursework
Monetary Policy A-level Coursework
It looks at fiscal policy, monetary policy and financial stability, as well as macroeconomic policy coordination. In order to promote higher growth, stability and a lasting increase in jobs" adopting a single model for the policy framework is not appropriate in all circumstances, and there may be more than one route to achieving stability.
34 Pages(8500 words)Coursework
Manufacturing process for (intermediate modulus) IM Carbon fibre reinforced composites
mbined with another plastic, such as methyl acrylate or methyl methacrylate, then is reacted with a catalytic agent in a solution polymerization procedure and results in a polyacrylonitrile plastic( Mazumdar, 2002. The plastic then is spun into fibers via one of numerous
2 Pages(500 words)Coursework
Exponential and logarithmic functions
Yes, on my graph this data seems to represent a natural logarithmic function. This is because the graph passes through (1, -9.5904), going off to the right, but also sliding down the positive side of the y-axis. The graph of the log is the
5 Pages(1250 words)Coursework
Intermediate Macroeconomics
Is there any relationship between them? Can you provide any explanation? There is a relationship between the variables. As the real GDP increases so does the consumption of durables,
4 Pages(1000 words)Coursework
Econometrics
The alternative hypothesis is that the students whose language is not English are more eager readers of fiction than those who speak English at home. The t test in this case is as follows: The t
3 Pages(750 words)Coursework
Principles of Econometrics
Let’s again use the property that (and of course this also means that ). We apply these facts to Equation (3) and solve for . This gives, Random assignment of participants in experiments or treatment and control groups help to ensure
9 Pages(2250 words)Coursework
CAPM and Fama French
The main objective of econometrics is to conduct quantitative analysis, which refers to defining the opinions in more structured and understandable ways so more reliable facts can be
9 Pages(2250 words)Coursework
Condition vs. Statement Analysis
Financial statements record financial data over a financial year/period. Financial analysis is therefore a method of evaluating the performance of the business at hand (Studenmund, 2011). A variety of methods are employed in the financial statement analysis among them
1 Pages(250 words)Coursework
Let us find you another Coursework on topic Intermediate Econometrics for FREE!
+16312120006