StudentShare solutions
Triangle menu

Econometrix - Assignment Example

Nobody downloaded yet

Extract of sample

Test for Significance of Coefficient In order to test the significance of the coefficient, the following hypotheses have been drawn. Ho: The coefficient is equal to zero H1: The coefficient is greater than zero Test Statistics In order to test the significance of the coefficient of Age, t statistic is needed to be calculated. Formula In the given case, the estimated coefficient may be referred as ?Age = 0.043 while the Standard error for ?Age = 0.003. Therefore, Now for the given data set the t tabulated value had been found using the degree of freedom in the given case is 21600 – 3= 21597. The significance level for the test is 1%. The t critical value for the given data is found to be 2.326 (Allison, 1991). Decision Rule The Null hypothesis is rejected if t calculated is greater than t tabulated. Conclusion Since the t calculated value is greater than the t tabulated value i.e. 14.3333>2.326, hence the criteria suggests rejecting the null hypothesis. So it can be concluded that the coefficient value is not equal to zero. 1b. The equation required for the desired calculation is In the given case, Age= 30 years Size= 100 employees Therefore, the earnings calculated for the given age and size is equal to 7.337 pounds (Belsley, Kuh & Welsch, 2005). 1c) It depends as it sounds logical that a person with higher education would be earning greater than the one who has less education. Therefore, assuming that bigger organizations hire more educated people, it may be assumed that on average there is less probability that an organization employees older people. Omitting education in case if it is related to age was necessary to rule out the chances of error caused due to the correlation existing between age and education as an increase in age is termed to be negatively associated with education. Thus the model would have implied the issue of multicollinearity. When variables are extremely correlated, the variability explained exclusively by the single variables can be minor despite the fact that the variation explicated by the variables brought together is great. (Wooldridge, 2012). d. Model 2 (2.430) (0.053) (0.285) The sample size is 83, while R2 is 0.036 1d) By and large, with an increase in sample size, the estimated values tend to be better predictor of the population parameters. Therefore, with each additional observation that is admitted in the sample, the amount of information increases and that additional information usually aids in providing better statistics. Thus if the model provides a better estimating results, the standard errors will be reduced. The model 1 has been framed using an extensively large size of sample while model 2 has eliminated the general public and has enlisted only a specified fragment of the whole population resulting in a decreased size of sample. This ultimately targets the standard errors as they are increased due to the declined size of the sample. This contemplates the information that larger samples will bring forth more accurate estimates of the coefficients’ in a regression analysis (Aiken & West, 1991). e) Hypothesis testing for model 1 Where k=3, N= 21600 while R2=0.025 (Aiken & West, 1991) Calculating the F statistic Let the level of significance be 0.05, the F critical value in that case will be 2.6. Since the F calculated value is less than the F critical, hence, ...Show more


Econometrix Assignment The following model had been established by conducting a survey on the representative sample of UK workers in year 2004. (Model 1) (0.170) (0.003) (0.023) N = 21600, R2 = 0.025 1a. The sample size as represented by N is 21600 while the value of R2 is equal to 0.025…
Author : dlangosh
Econometrix Assignment essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Econometrix Assignment"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Coping strategies differ with personal attributes, situational factors and availability of these strategies to expatriates. On this basis, authors have tried to determine how time of
3 pages (750 words) Assignment
The enzyme is not used up during the reactions and does not undergo any change (“Role of Enzymes in Biochemical Reactions”, n.d.). Plasma membranes consist of phospholipid bilayers, which
2 pages (500 words) Assignment
For instance, only the federal government can declare war while both federal and state governments can tax (Grant 256). Cooperative federalism is a constitutional and a political
2 pages (500 words) Assignment
The world is capable of producing enough food to feed everyone and store the rest, but a combination of lack of will, resources, climate change and technological changes (GMOs) make sustainable agriculture seem either
1 pages (250 words) Assignment
Consequently, the company decided to implement Enterprise Resource Planning (ERP) system in order to strengthen its SCM. Notably, ERP system is an integrated software solutions and its implementation is often argued to be a long and complex process. Alongside, it is
2 pages (500 words) Assignment
When it comes to math, there is no single subject I loved than math every since elementary school. I find it fan playing around with numbers and coming up with a solution. I also find it amazing that the concepts taught in math are the
1 pages (250 words) Assignment
The secondary intervention is to hold public prevention campaigns to create awareness to people on the causes of the disease and how they can live a healthy lifestyle. Tertiary intervention includes engaging
2 pages (500 words) Assignment
chool personnel surprise their friend who has an unstable heart condition and the person gets a heart attack, then the school personnel commits an intentional tort. b) Unintentional Torts: In instances where a person damages another person’s property, this is usually noted as
1 pages (250 words) Assignment
From the two investment projects being considered by Canadian Metal Company, both have a positive net present value therefore in this case the investment that should be made is the one with a higher net present value which is the oil
1 pages (250 words) Assignment
Abby correctly believed that it was normal to feel a little anxious sometimes; however, as the semester has progressed, she has not begun
2 pages (500 words) Assignment
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Assignment on topic Econometrix Assignment for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us