Consider the following regression model, log(CON)=B0 + B1INC + B2INC2 + B3PRICE + u Vhere CON = Household consumption expenditure INC = Household income INC? = Household income squared PRICE = General price level 中 Regression Estimates- Dependent variable: log(CON) Variables Coefficient Estimates and (Standard Errors) Equation 1 Equation 2 Constant 1.2136 1.5731 (0.1961) (0.0849) INC 0.0029 (0.001) INC? 0.0013 (0.00051) PRICE -0.0081 -0.0095 (0.0035) (0.0017) N (Number of Observations) SSR (Sum of Squared Residuals) R? 500 500 145.63 184.09 0.52 0.45 bu wanted to test whether income has significant effect on household consumption. Which of the llowing represents the approximate critical value for this test at 1% level of significance? 100 0 00
Consider the following regression model, log(CON)=B0 + B1INC + B2INC2 + B3PRICE + u Vhere CON = Household consumption expenditure INC = Household income INC? = Household income squared PRICE = General price level 中 Regression Estimates- Dependent variable: log(CON) Variables Coefficient Estimates and (Standard Errors) Equation 1 Equation 2 Constant 1.2136 1.5731 (0.1961) (0.0849) INC 0.0029 (0.001) INC? 0.0013 (0.00051) PRICE -0.0081 -0.0095 (0.0035) (0.0017) N (Number of Observations) SSR (Sum of Squared Residuals) R? 500 500 145.63 184.09 0.52 0.45 bu wanted to test whether income has significant effect on household consumption. Which of the llowing represents the approximate critical value for this test at 1% level of significance? 100 0 00
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.3: Modeling Data With Power Functions
Problem 3TU
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Transcribed Image Text:Consider the following regression model,
log(CON)=Bo + B,INC + B2INC2 + B3PRICE + u
Where CON = Household consumption expenditure
INC = Household income
INC? = Household income squared
PRICE = General price level
Regression Estimates- Dependent variable: log(CON)
Variables
Coefficient Estimates and (Standard Errors)
Equation 1
Equation 2
1.2136
(0.1961)
Constant
1.5731
(0.0849)
INC
0.0029
(0.001)
INC?
0.0013
(0.00051)
PRICE
-0.0081
-0.0095
(0.0035)
(0.0017)
N (Number of
Observations)
SSR (Sum of Squared
Residuals)
R2
500
500
145.63
184.09
0.52
0.45
You wanted to test whether income has significant effect on household consumption. Which of the
following represents the approximate critical value for this test at 1% level of significance?
Critical value of F with 1% level of significance and 3 and 496 df is: F = 2.60
Critical value of t with 1% level of significance and 2 and 498 df is: F = 2.326
Critical value of F with 1% level of significance and 2 and 496 df is: F = 4.61
Critical value of t with 1% level of significance and 496 df: t = 2.576
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