Interactive Regression Learning Assignment Using Eviews
Essay by Tôn Đỗ Dương • December 14, 2016 • Research Paper • 1,417 Words (6 Pages) • 1,138 Views
Students: Vũ Phan Dũng – 11140811, Đỗ Dương Tôn - 11144814
Class: Advanced Finance 56B
INTERACTIVE REGRESSION LEARNING ASSIGNMENT
USING EVIEWS
I. Eviews Workfile data
[pic 1]
II. Regression Run
1. Regression Run #1: Including all variables
[pic 2]
INT | POP | T | R | PR | Y | CO | |
β-head | 7.6 | 0.07 | 0.79 | -0.33 | -63.44 | 1.08 | -7.20 |
SE | 0.46 | 0.52 | 0.11 | 68.9 | 0.88 | 4.49 | |
t | 0.15 | 1.5 | -2.97 | -0.92 | 1.22 | -1.6 |
Adjusted R-square: 0.84
- Hypothesis testing:
Coefficient of | POP | T | R | PR | Y | CO |
Hypothesized sign | + | + | - | - | + | - |
t-value | 0.15 | 1.5 | -2.97 | -0.92 | 1.22 | -1.6 |
Critical value = 1.729 | Do not reject | Do not reject | Reject | Do not reject | Do not reject | Do not reject |
- Comment: We can only reject the null hypothesis of R. Therefore, it is likely that the hypothesized sign of R is true. We can’t conclude the signs of other variables.
2. Regression Run #2: Remove POP, holding others constant
[pic 3]
INT | POP | T | R | PR | Y | CO | |
β-head | 15.33 | 0.80 | -0.32 | -73.5 | 1.21 | -6.92 | |
SE | 0.51 | 0.10 | 20.9 | 0.17 | 3.98 | ||
t | 1.6 | -3.23 | -3.5 | 6.99 | -1.74 |
Adjusted R-square: 0.85
- Hypothesis testing:
Coefficient of | T | R | PR | Y | CO |
Hypothesized sign | + | - | - | + | - |
t-value | 1.6 | -3.23 | -3.5 | 6.99 | -1.74 |
Critical value = 1.725 | Do not reject | Reject | Reject | Reject | Reject |
- Comment:
- Theory: The population is an essential variable that related to the demand for water. The more populated Glendale is, the more water consumed.
- t-Test: t-value of POP is insignificant (0.15).
- Adjusted R-square: Slightly increases by 0.01 when POP is omitted but not much.
- Bias: None of the estimated slope coefficients changes significantly when POP is added, though some of the t-scores do change.
→ We should not eliminate POP from the equation.
3. Regression Run #3: Remove T, holding others constant
[pic 4]
INT | POP | T | R | PR | Y | CO | |
β-head | 46.3 | 0.18 | -0.35 | -52.6 | 0.92 | -6.90 | |
SE | 0.47 | 0.11 | 70.6 | 0.90 | 4.62 | ||
t | 0.38 | -3.10 | -0.75 | 1.0 | -1.5 |
Adjusted R-square: 0.83
- Hypothesis testing:
Coefficient of | POP | R | PR | Y | CO |
Hypothesized sign | + | - | - | + | - |
t-value | 0.38 | -3.10 | -0.75 | 1.0 | -1.5 |
Critical value = 1.725 | Do not reject | Reject | Do not reject | Do not reject | Do not reject |
...
...