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ECO 301 Regression Analysis Assignment

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Question;Step 1;Download the Regression Analysis Practice document (Excel;file).;Step 2;Make sure you have the Data Analysis ToolPak add-in for your;Excel. You can do that by going to the Data tab and searching for Data;Analysis. If it does not appear, you will need to download it. The steps to;download add-ins varies with each version of Excel. Here are the steps for the;2007 version;Click on the Excel icon in the upper-left corner of your;spreadsheet.;Click on Excel Options.;Along the left-side menu, click on Add-Ins.;Select Analysis ToolPak and follow the instructions.;Step 3;At the bottom, click on the ?Demand for Jet Fuel? tab. The;sample demand equation is estimated using this data set, and the results are;shown.;Step 4;Use the procedure described to estimate the demand for;gasoline using the same steps identified in the example below. Sample answers;are based on the ?Demand for Jet Fuel? data.;Evaluate adjusted R2.;The adjusted R2 is 0.778421. It indicates that approximately;78% of the variation in the demand for jet fuel across states is explained by the;three independent variables?price, state GDP, and state population.;Evaluate each of the independent variables using a t-test.;Table 1 provides the results of the t-tests for each of the;independent variables.;Coefficients Standard Error T-Stat P-Value;Intercept -18.4498 45.28617 -0.40741 0.68556;Price 0.138429 2.788582 0.049641 0.960619;GDP 0.170079 0.039165 4.342646 7.45E-05;Population 0.005281 0.001791 2.948036 0.004967;Table 1: T-Test Analysis;To assist use the Student t-Value Calculator;http://www.danielsoper.com/statcalc3/calc.aspx?id=10;The degrees of freedom are 47, and the probability is 0.05.;The critical value is approximately 2. If the absolute value of the t-statistic;is greater than 2, the null hypothesis can be rejected. The P-value results can;be used to determine whether to reject each of the following hypotheses.;Using the null hypothesis that each of the estimated;coefficients is not significantly different from zero, and a 5% probably level;(or a 5% probability of obtaining the test statistic as large or larger as the;one obtained if the true value is in fact zero), the coefficients for GDP and;Population are significant (reject the null hypothesis that the true values are;0), while coefficients for the intercept and price are not significant (do not;reject the null hypothesis that the true values of the coefficients are zero).;Price;(a) H0:?p = 0;HA,?p 0 Do;not reject at the 5% level (P-value > 0.05);GDP;(b) H0:?gdp = 0;HA,?gdp 0 Reject at the 5% level (P-value < 0.05);POP;(c) H0:?pop =;0, HA,?pop 0 Reject at the 5% level (P-value 4.00, reject the null hypothesis. At;least one of the??s is not equal to zero. You can also use the ?Significance;of F? information, which indicates that the critical value would need to be;essentially zero to not reject the null hypothesis.;Step 5;Submit your regression results and answers to the questions;given using the Assignment link.

 

Paper#56496 | Written in 18-Jul-2015

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