MAE Assingment Assignment Example | Topics and Well Written Essays - 2000 words

MAE Assingment - Assignment ExampleDev. 0.025827 11240942 65635008 0.019383 Observations 45 45 45 45 put back 1 to a higher place presents the descriptive statistics for our variables of interest. The only point of concern that may arise in this situation is that all the variables resile some degree of skewness which violates the normality assumption. Additionally, the fact that the number of observations is only 45 may also be a point of concern since this can lead to small exemplar bias. 2. Time speckles strain 1 Time plot of P There are no seasonal patterns evident in the time plot of P. Figure 2 Time plot of Q The time plot of Q exhibits strong seasonal variations. Figure 3 Time plot of G As is evident from haoma 3 above, similar to the time plot of P, the time plot of G also does non exhibit seasonal fluctuations. Figure 4 Time plot of X Figure 4 shows that X also follows a seasonally fluctuating pattern 3. Thus, there is strong evidence of seasonal fluctuations among t he Q and X series. This is discernible in the oscillatory patterns that these series seem to follow. The series P and G exhibit no seasonal patterns. Additionally, all the series reflect a cool it upward trend. Therefore inclusion of seasonal dummies is important since our dependent variable Q does exhibit seasonal fluctuations. ... 18.31869 0.0000 P -7530.197 6092.988 -1.235879 0.2235 G -84559.50 9770.479 -8.654591 0.0000 X 1.865016 0.111494 16.72746 0.0000 R-squared 0.915605 Mean dependent var 4442.111 Adjusted R-squared 0.909430 S.D. dependent var 505.4463 S.E. of regression 152.1132 Akaike info criterion 12.97181 Sum squared resid 948675.2 Schwarz criterion 13.13241 Log likelihood -287.8658 Hannan-Quinn criter. 13.03168 F-statistic 148.2710 Durbin-Watson stat 1.390217 Prob(F-statistic) 0.000000 From table 2 above we find that the estimated coefficients for both P and X are significantly different from zero (evident from the t-statistic). G however is not a significant determin ant of Q. The coefficients reflect that the demand for drink and tobacco is negatively influenced by the price of the items and positively influenced by the total consumer expenditure. The coefficient on G is also negative but since it is not significantly different from 0 at the 5% level, we conclude that it does not have an influence on drink and tobacco demand. Thus, our results imply that an increase in the prices of drinks and tobacco will lead to a reduction in its demand while an increase in overall consumer expenditure leads to an increase in the demand. 5. Attempting to allow all four dummies leads to perfect multicollinearity. Thus we modify the equation and include dummies for the 1st 3 quarters only. Table 3 presents the results. Table 3 OLS adhesion with quarterly dummies Dependent Variable Q Method Least Squares Date 09/01/11 Time 0101 Sample 1980Q1 1991Q1 Included observations 45 Coefficient Std. Error t-Statistic Prob. C 5127.935 356.9563 14.36572 0.0000 P -8713.96 4 2700.994 -3.226206 0.0026 X 0.805451 0.096091 8.382187 0.0000 G -23150.70