Question
In: Economics
Using the following regression results Dependent Variable: Q for the monopolistically competitive chemical company Intercept &nbs
Using the following regression results
Dependent Variable: Q for the monopolistically competitive chemical company
Intercept -3.415
(0.2660)
Price 0.118
(0.029)
Price Related Chemicals 0.028
(0.003)
Local Dummy 0.039
(0.033)
R^2 0.8022
ADJ. R^2 0.7905
OBS 58
Note standard errors for each variable is in parenthesis below the corresponding variable.
a. discuss the statistical significance of the parameters and the equation as a whole.
b. what is the estimated value of the parameter?
c. what would be different if this estimated equation was instead a production, cost or supply estimation?
Solutions
Expert Solution
The regression equation is:
Q=-3.415 + 0.118*Price + 0.028*Price_Related_Chemicals + 0.039*Local_Dummy
The actual t-statistic = Parameter estimates/Standard Error
(a)
| Parameter estimates | Standard Error | actual t-statistic | absolute value of actual t-statistic | At 5% level of significance, critical t-statistic at n-3 , 55 degree of freedom | |
| Intercept | -3.415 | 0.266 | -12.83834586 | 12.83834586 | 2.00 |
| Price | 0.118 | 0.029 | 4.068965517 | 4.068965517 | 2.00 |
| Price Related Chemicals | 0.028 | 0.003 | 9.333333333 | 9.333333333 | 2.00 |
| Local Dummy | 0.039 | 0.033 | 1.181818182 | 1.181818182 | 2.00 |
Thus, it can be observed that Intercept, Price and Price Related Chemicals are statistically significant variables at 5% level of significance.
(b) The estimated value of parameters are the parameter estimates of Intercept, Price, Price Related Chemicals and Local Dummy.
Thus, the result is:
| Parameter estimates | |
| Intercept | -3.415 |
| Price | 0.118 |
| Price Related Chemicals | 0.028 |
| Local Dummy | 0.039 |
(c)
If the estimated equation would have been production or cost or supply estimation, the structural form of the model would have been different.
Rahul Sunny answered 1 year agoRelated Solutions
Consider the following regression results of B for time series data. The dependent variable is the...
Consider the following regression results of B for time series
data. The dependent variable is the log of real consumption and the
regressors are all lagged by one period. The coefficients are
estimated by OLS method. *, **, and *** indicate that the
coefficients are significant at the 10%, 5%, and 1% level,
respectively. The F- test in the last row tests the joint
hypothesis that all the coefficients except the constant are zero
and their p-values are provided in...
For a regression with log(bweight) as the dependent variable, we have Variable Estimate Standard Error Constant/Intercept...
For a regression with log(bweight) as the dependent variable, we
have
Variable
Estimate
Standard Error
Constant/Intercept
4.66
0.029
Male
0.03
0.010
Motheduc
0.002
0.002
lfaminc
0.02
0.006
You expect an increase in family income to increase birth
weight. Test this hypothesis at the 1% level of significance. Make
sure you explicitly include all of the steps.
The following are regression results where Car Price is the dependent variable: Regression Statistics ?2=0.446R2=0.446 Adjusted...
The following are regression results where Car Price is the
dependent variable:
Regression Statistics
?2=0.446R2=0.446 Adjusted ?2=0.441R2=0.441 Observations =
804
Independent Variables
Coefficients
Standard Error
t Stat
P-value
Intercept
6758.76
1876.967
3.601
0.000
Mileage
-0.17
0.032
-5.326
0.000
Cylinder
3792.38
683.180
5.551
0.000
Liter
-787.22
867.062
-0.908
0.364
Doors
-1542.75
320.456
-4.814
0.000
Cruise
6289.00
657.992
9.558
0.000
Sound
-1993.80
571.776
-3.487
0.001
Leather
3349.36
597.681
5.604
0.000
Car Price is measured in dollars. The independent variables
are:
Mileage: number...
Estimate a multiple linear regression relationship with the U.K. stock returns as the dependent variable (intercept), and RBUK, U.S.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.727076179
R
Square
0.528639771
Adjusted R Square
0.525504337
Standard Error
3.573206748
Observations
455
ANOVA
df
SS
MS
F
Significance F
Regression
3
6458.025113
2152.67504
168.601791
2.7119E-73
Residual
451
5758.280717
12.7678065
Total
454
12216.30583
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 99.0%
Upper 99.0%
Intercept
-0.250148858
0.359211364
-0.6963835
0.48654745
-0.9560846
0.45578693
-1.1793476
0.67904987
RBUK
0.025079378
0.023812698
1.05319345
0.29281626
-0.0217182
0.07187699
-0.0365187
0.08667745
RSUS
0.713727515
0.042328316
16.8617037
8.0578E-50
0.6305423
0.79691273
0.60423372
0.82322131...
Below are results from a regression analysis. The dependent variable is the percent vote for Woodrow...
Below are results from a regression analysis. The dependent
variable is the percent vote for Woodrow Wilson in 1916, measured
from 0 to 100. Each observation is a New Jersey county, of which
there are 20. The independent variables are the county’s percentage
of Democrats (0 to 100), percentage working class (0 to 100), and
the number of shark attacks that occurred in it in 1916 (0, 1, 2, .
. . ). Shark attacks are rare: no county experienced...
You estimated a regression model using annual returns of ExxonMobil (as a dependent variable) and of...
You estimated a regression model using annual returns of
ExxonMobil (as a dependent variable) and of the market (as an
independent variable). The R-squared of this regression is 0.2, and
the total variance of ExxonMobil's returns in the estimation window
is 0.0625. In this case, the variance of the unsystematic (or
idiosyncratic) component of ExxonMobil's returns is:
Using Excel generate a simple regression model with Y as the dependent variable and X1 and...
Using Excel generate a simple regression model with Y
as the dependent variable and X1 and X2 as the independent
variables in the attached spreadsheet.
Write the following from the output:
Intercept:
Coefficients of Independent variable:
R-square:
Significance F:
Based on the model generated, forecast profits for a firm with
X1= Based on the model generated, forecast profits for a firm with
x1=250 and X2=100.
Evaluate the predictability of the model using explanatory
language that someone who does not have...
You estimated a regression model using annual returns of ExxonMobil (as a dependent variable) and of...
You estimated a regression model using annual returns of
ExxonMobil (as a dependent variable) and of the market (as an
independent variable). The R-squared of this regression is 0.2, and
the total standard deviation of ExxonMobil's returns in the
estimation window is 25%. In this case, the standard deviation of
the unsystematic (or idiosyncratic) component of ExxonMobil's
returns is:
The following output was obtained from a regression analysis of the dependent variable Rating and an...
The following output was obtained from a regression analysis of
the dependent variable Rating and an independent variable Price.
(10 points)
ANOVA
df
SS
MS
F
Regression
1
372.707
372.707
42.927
Residual
15
130.234
8.682
Total
16
502.941
Coefficients
Standard Error
t Stat
P-value
Intercept
45.623
3.630
12.569
0.000
Price
0.107
0.016
6.552
0.000
Use the critical value approach to perform an F test for the
significance of the linear relationship between Rating and Price at
the 0.05 level of...
Fit a multiple regression model using MPG as the dependent variable and DISP, HP, and WT...
Fit a multiple regression model using MPG as the dependent
variable and DISP, HP, and WT as the independent variables.
Is the overall regression model significant? Test at the α =
0.05 level of significance. State the null hypothesis, the
alternative hypothesis =, the test statistic calculated and
critical values and your test conclusion.
mpg
disp
hp
wt
21
160
110
2.62
21
160
110
2.875
22.8
108
93
2.32
21.4
258
110
3.215
18.7
360
175
3.44
18.1
225...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
ADVERTISEMENT