Economic Rough Answers

212ECN SUMMER 2010 Coventry University Faculty of Business, Environment and Society 212ECN scotch & Financial Modelling INSTRUCTIONS TO CANDIDATES Time allowed 2 hours You moldiness state both questions in portion A and because all Question 3 or 4 in part B For this examination you will be supplied with the sp are-time activity: Statistical tables You may take this exam paper outside(a) at the termination of the examination: please keep it in a safe place for future reference _____________________________________________________ 1 Continued... 212ECN Part A 1. Question 1 You ar presented with the pursual results from a number of regression toward the means. The following questions refer to the sidesteps I and II. The variables are Housing Expenditure, Disposable Income (DY) & Retail Price ability (RPI) Table I OLS, using observations 1948-1990 (T = 43) Dependent variable: living accommodations Coefficient Std. misconduct t-ratio 47893.3 2233.06 21.4474 0.11569 0.00439485 26.3240 103908.4 8.08e+08 0.944138 692.9524 -421.1264 849.7753 0.861024 p-value regression is better than just a unalterable (15 marks) ii) The residuals flummox a skewness of 1.1384 and an excess kurtosis of 2.1531. atomic number 18 they commonly distributed? peak the test statistic for this.

H0: ordinarily distributed ( ) H1: not normally distributed ( ) 2 2 JB = 188/6*(1.1184 + 2.1531 /4) = 76.92 > 5.99 = ?2(2)5% -> reject H0 -> residuals are not normally distributed (5 marks) iii) What come to the regression tycoon you use to deal with the autocorrelation exhib ited by the lay? develop the procedure ful! ly. Lecture notes (20 marks) 5 Continued... 212ECN iv) What supplementary tests would you cay a picture to perform in light of results of the regression above? Explain the tests fully and any corrective measures you might take. t, heteroskedasticity, structural break, multicollinearity, RESET, etc. (30 marks) v) Explain the economic significance of the coefficients. Are they as you would express from economic theory? Fisher shot;...If you want to pound a full essay, order it on our website: OrderCustomPaper.com

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