• +44-190-022-0819
• +1-248-268-9041
• +61288800241

### SEARCH SOLUTION

##### Search your solution from list of 1000+ questions

05-07-2019 Product code Statistics-PH355

BA 2031 MACROECONOMICS ANALYSIS II

ASSIGNMENT

DUE DATE: 5 DECEMBER 2018 Wednesday before 5:00hrs (PM).

Instructions: Choose any ONE of the two questions. Answer must be printed on A4 size pages. Provide one cover page to show your name and class. Do not submit project with ring binding or any plastic material.

Question 2

The following is the real consumption function of United States, it consists of real consumption expenditure, real income, real wealth, and real interest rates in the United States for the years 1947 to 2000. Download Table 2 to run the regression in EViews 8.

Where C = Real consumption expenditure

Y = Real income

W = Real wealth

R = real interest rates

Now estimate the consumption function:

Ct = b1 + b2Yt + b3Wt + b4Rt + ut

Consumption =

From macroeconomic theory it is known that consumption generally depends on certain important factors such as real income, etc. In view of these considerations, answer the following questions:

(a)               Use Eviews 8 to run the above regression using data from Table 2 and show the results. (2 marks)

(b)   Explain the economic relationship between the dependent and independent variables of the regression equation above without looking at the regression result. State and explain any other variables that you would include in the equation above.

Ct = b1 + b2Yt + b3Wt + b4Rt + ut

[8 marks]

(c)               Interpret the OLS regression results shown above in terms of:

(i)                 Economic interpretation of the results.

[8 marks]

(ii)              Comment of the econometric/statistical interpretation of the results.

[10 marks]

(d)               Are the empirical results in accordance with prior macroeconomic theoretical expectations? Explain.

[2 marks]

[Total marks: 30]

Eviews - Regression Result

Consumption Expenditure:

 Dependent Variable: C01 Method: Least Squares Date: 11/29/18   Time: 12:09 Sample: 1947 2000 Included observations: 54 Variable Coefficient Std. Error t-Statistic Prob. C -20.63274 12.82699 -1.608541 0.1140 YD 0.734028 0.013752 53.37622 0.0000 WEALTH 0.035976 0.002483 14.48822 0.0000 INTEREST -5.521224 2.306675 -2.393585 0.0205 R-squared 0.999402 Mean dependent var 2888.356 Adjusted R-squared 0.999366 S.D. dependent var 1500.903 S.E. of regression 37.79877 Akaike info criterion 10.17362 Sum squared resid 71437.35 Schwarz criterion 10.32095 Log likelihood -270.6877 Hannan-Quinn criter. 10.23044 F-statistic 27838.41 Durbin-Watson stat 1.310554 Prob(F-statistic) 0.000000

BA 2031 MACROECONOMICS ANALYSIS II ASSIGNMENT DUE DATE: 5 DECEMBER 2018 Wednesday before 5:00hrs (PM). Instructions: Choose any ONE of the two questions. Answer must be printed on A4 size pages. Provide one cover page to show your name and class. Do not submit project with ring binding or any plastic material. Question 2 The following is the real consumption function of United States, it consists of real consumption expenditure, real income, real wealth, and real interest rates in the United States for the years 1947 to 2000. Download Table 2 to run the regression in EViews 8. Related Questions in (Statistics)

18-01-2018 Solution: Mode is defined as the value which occurs more frequently in the data set. The mode for non-business is 82 while for business is only 59. P value can be calculated from z table . As per z table p valu ...

07-02-2019 Solution: Sol 1 The histogram of the dependant variable is highly right skewed with a hard cut-off at 0. This is an inverse log distribution. As shown in the plot below. ...

10-07-2019 Solution: Data Set 1 2 3 4 5.8 6.2 6.1 6 5.9 6 5.9 5.9 6 5.9 6 5.9 6.1 5.9 5.8 6.1

11-07-2019 Solution: Sample Size Calculation The formula for sample size calculation has been calculated from KP Suresh and S Chandrashekara , who present a way for calculating sample size estimation for proportion in ...

11-07-2019 Solution: Hypothesis: Are Students Distracted by cell phones during class time The study that we are trying to take on here mainly depends on the age-long problem that had continuously plagued us since the adve ...

12-07-2019 Solution: HYPOTHESIS Within the reach of my research I would like to prove that a relationship exists between the number of people who smoke regularly and those who die from cancer. For proving my hypothesis, I ...

13-07-2019 Solution: a. State the null hypothesis. H0: ?1 = ?2 = ?3 ... = ?k b. State the alternative hypothesis. H1: Means are not all equal. c. Calculate dfbetween (also known as dfNumerator). 1.7 d. Calculate ...

13-07-2019 Solution: survey (q1 through q10), producing the following results: Descriptive Statistics Mean Std. Deviation N q1 2.66 1.529 496 q30 1.44 1.034 473 q32 1.95 1.372 470 q47 1.38 4.754 462 q52 4.04 .932 464 ...