(b) The following OLS regression results and White Heteroscedasticity Test are obtained fromEviews for the following regression model C, = B% +ß1Yd + B,Wi + B•IR + Ei.where C = real consumption expenditureYd = real disposable personal incomeW = real wealthIR = real interest rateDependent Variable: CONSMethod: Least SquaresSample: 1947 2000Included observations: 54VariableCoefficientStd. Errort-StatisticProb.C-20.7181112.83272-1.6144760.1127YD0.7339910.01375853.349910.00000.0024842.3076780.00000.0204W0.03598514.48563-2.394320IR-5.525320R-squaredAdjusted R-squaredS.E. of regressionSum squared residLog likelihoodF-statisticProb(F-statistic)Mean dependent varS.D. dependent varAkaike info criterion0.9994012888.2960.9993651500.92037.8157371501.48-270.711910.17451Schwarz criterion10.32185Hannan-Quinn criter.10.2313327814.08Durbin-Watson stat1.3100170.000000Heteroskedasticity Test: WhiteF-statisticObs*R-squaredScaled explained SSProb. F(9,44)Prob. Chi-Square(9)Prob. Chi-Square(9)0.00000.0001|0.00007.57327532.8158853.99769Does the problem of Heteroscedasticity exist in this regression model? Justify your answers.

regression analysis is a set of statistical processes for estimating the relationships between a…

(b) The following OLS regression results and White Heteroscedasticity Test are obtained from Eviews for the following regression model C = B% +BiYdu + B,W + B-IR + E. where C= real consumption expenditure Yd = real disposable personal income W = real wealth IR = real interest rate Dependent Variable: CONS Method: Least Squares Sample: 1947 2000 Included observations: 54 Variable Coefficient Std. Error t-Statistic Prob. -20.71811 12.83272 -1.614476 0.1127 YD 0.013758 0.002484 0.733991 53.34991 0.0000 0.035985 14.48563 0.0000

(b) The following OLS regression results and White Heteroscedasticity Test are obtained from Eviews for the following regression model C = B% +BiYdu + B,W + B-IR + E. where C= real consumption expenditure Yd = real disposable personal income W = real wealth IR = real interest rate Dependent Variable: CONS Method: Least Squares Sample: 1947 2000 Included observations: 54 Variable Coefficient Std. Error t-Statistic Prob. -20.71811 12.83272 -1.614476 0.1127 YD 0.013758 0.002484 0.733991 53.34991 0.0000 0.035985 14.48563 0.0000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 1E

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