a. Upon reviewing the results of a multiple regression involving 30 observations on cross sectional data...

a. Upon reviewing the results of a multiple regression involving 30 observations on cross sectional data the Econometric Society suspected that the variances of the error terms might be related to the predicted values of the dependent variable. Alarmed by the prospects they quickly ran a simple regression yielding the following results:

ei 2 = 10.956 + 3.068?̂? R 2 = 0.096

Using hypothesis testing, test at a 5% level to see if the variance of error terms is related to the predicted values of the dependent variable. - State hypotheses, calculated and critical values for the test statistic, and conclusion.

Expert Solution

orchestra answered 3 years ago

a. Upon reviewing the results of a multiple regression involving 30 observations on cross-sectional data the...

a. Upon reviewing the results of a multiple regression involving 30 observations on cross-sectional data the Econometric Society suspected that the variances of the error terms might be related to the predicted values of the dependent variable. Alarmed by the prospects they quickly ran a simple regression yielding the following results: ei2 = 10.956 + 3.068?̂? R2 = 0.096 Using hypothesis testing, test at a 5% level to see if the variance of error terms is related to the predicted...

When estimating a multiple linear regression model based on 30 observations, the following results were obtained....

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In a regression analysis involving 30 observations, the following estimated regression equation was obtained. ŷ =...

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Hi, I need to have a cross sectional data in order to do regression analysis. and...

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) Consider the following regression results based on 30 observations. y = 238.33 – 0.95x1 +...

) Consider the following regression results based on 30 observations. y = 238.33 – 0.95x1 + 7.13x2 + 4.76x3; SSE = 3,439 y = 209.56 – 1.03x1 + 5.24(x2 + x3); SSE = 3,559 a. Formulate the hypotheses to determine whether the influences of x2 and x3 differ in explaining y. b. Calculate the value of the test statistic. c. At the 5% significance level, find the critical value(s). d. What is your conclusion to the test?

why cross sectional regression rule out perfect collinearity among the regressors

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