💬 👋 We’re always here. Join our Discord to connect with other students 24/7, any time, night or day.Join Here!

Get the answer to your homework problem.

Try Numerade free for 7 days

Like

Report

Use VOTEl for this exercise.(i) Estimate a model with voteA as the dependent variable and prystrA, democA, log(expendA),and log(expendB) as independent variables. Obtain the OLS residuals, $\hat{u}_{i},$ and regress these onall of the independent variables. Explain why you obtain $R^{2}=0$ .(ii) Now, compute the Breusch-Pagan test for heteroskedasticity. Use the $F$ statistic version andreport the $p$ -value.(iii) Compute the special case of the White test for heteroskedasticity, again using the $F$ statisticform. How strong is the evidence for heteroskedasticity now?

i. This is the goal of OLS. ii. BP unable to reject null (homoskedasticity) at 5%. iii. White test gives similar conclusion.

07:27

Priyam V.

No Related Courses

Chapter 8

Heteroskedasticity

No Related Subtopics

07:33

Use the data in MEAP9 3 to…

14:03

Use the data in MLB1 for t…

04:30

Use the data set in WAGE2 …

05:53

In this exercise, you are …

07:58

Use the data in WAGE2 for …

09:46

Use the data in WAGEl for …

07:48

Refer to the data presente…

02:41

In Problem 2 in Chapter $4…

05:28

In exercise $1,$ the follo…

08:18

Use the data in GPA1 for t…

00:59

Using the regression outpu…

01:55

Confirm the partialling ou…

06:33

The following problem is r…

00:54

Using the regression out- …

05:31

Consider the following mod…

04:35

Find the confidence coeffi…

04:02

Residuals and errors Appro…

03:26

(i) Use the data in HPRICE…

07:28

Determine the $p$ -value t…

02:53

Given multivariate data $\…

this is the regression result. The art square of the regression is 0.8 and there are 173 observations in the sample. I have the beta estimates in blue and they're centered errors in green. So given this regression, now you can get the residuals from the regression and then regrets the residual under right hand side variables. Again, you may find that your are square would be almost zero. This happens due to the outcome of their old ls the purpose of the l s. So ls chooses beta head such that they are uncorrelated with their residuals or the error terms and error terms will also have a zero sample Simple mean. Also, we have a very well defined, uh, model. If we run into problems such as admitted variables, then it's likely that the regression of the residual on their right hand side variables will not produce. A zero are square for Part B and C. We're going to test whether there is hetero Scholastic City. The null hypothesis in both B and C is and no had terrorists. Galatis City or there is home. Most get elasticity in Part B. We will do a BP test in the BP test, we will regret they're square residual on the independent variables. In part one, the EFS test the F statistic with four and 168 degrees of freedom ISS about 2.33 with a P value of 0.58 And it means that we are are unable to reject the null hypotheses at the 5% level. For policy, we do a white test. A white test, um, is conducted by regressing The square residuals on there fitted value of their outcome variable and fitted Value square actually vote a head and vote a head square. And what a hat. Are there old aesthetic values from Part one? Yeah, the F start with two and 1 70 degrees of freedom. It's about 2.79 with a p value of pointing 065 Oh, and we have a similar conclusion to part B. In short. For both part, there is some evidence of hetero Scholastic city, but not quite at the 5% level.

View More Answers From This Book

Find Another Textbook

Use the data in MEAP9 3 to answer this question.(i) Estimate the model

Use the data in MLB1 for this exercise.(i) Use the model estimated in eq…

Use the data set in WAGE2 for this problem. As usual, be sure all of the fol…

In this exercise, you are to compare OLS and LAD estimates of the effects of…

Use the data in WAGE2 for this exercise.(i) Consider the standard wage e…

Use the data in WAGEl for this exercise.(i) Use OLS to estimate the equa…

Refer to the data presented in exercise $2 .$ The estimated regression equat…

In Problem 2 in Chapter $4,$ we added the return on the firm's stock, $…

In exercise $1,$ the following estimated regression equation based on 10 obs…

Use the data in GPA1 for this exercise.(i) Add the variables mothcoll an…

Using the regression output from Exercise 2, identify the standard deviation…

Confirm the partialling out interpretation of the OLS estimates by explicitl…

The following problem is reprinted from the November 1989 Actuarial Examinat…

Using the regression out- put in Exercise 1, identify the standard deviation…

Consider the following model to explain sleeping behavior:sleep $=\beta_…

Find the confidence coefficient, $t\left(\mathrm{df}, \frac{\alpha}{2}\right…

Residuals and errors Approximate the root of $f(x)=x^{10}$ at $x=0$ using Ne…

(i) Use the data in HPRICEl to obtain the heteroskedasticity-robust standard…

Determine the $p$ -value that would be used to test the following hypotheses…

Given multivariate data $\mathbf{X}_{1}, \ldots, \mathbf{X}_{N}$ (in $\mathb…

11:14

Use the data in COUNTYMURDERS to answer this questions. Use only the data fo…

12:49

Use the data from JTRAIN for this exercise.(i) Consider the simple regre…

05:01

Add the variable log( prgnp) to the minimum wage equation in $(10.38) .$ Is …

11:53

Use the data in PNTSPRD for this exercise.(i) The variable sprdcvis a bi…

07:03

Use the data in GPA 2 for this exercise.(i) Estimate the model$\quad…

02:32

A bakery operating in competitive markets sells itsoutput for $\$ 20$ pe…

02:48

A storm destroys several factories, thereby reducingthe stock of capital…

12:04

Consider a model where the return to education depends upon the amount of wo…

05:16

In Example $4.9,$ the restricted version of the model can be estimated using…

00:05

Use the data in CHARITY to answer the following questions:(i) Estimate t…