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Q1) For following two regressions describe and interpret major parts from regression output. write down the difference between two regressions? In Model 2 which variable must be dropped?
Model 3: OLS evaluates using the 36 observations 1960-1995
Dependent variable: lnG
Coefficient
Std. Error
t-ratio
p-value
const
-11.1239
0.738359
-15.0657
<0.00001
***
lnPg
-0.0812498
0.027939
-2.9081
0.00656
lnY
1.81327
0.0797564
22.7351
lnPs
-0.141843
0.0383286
-3.7007
0.00081
Mean dependent var
5.392989
S.D. dependent var
0.248779
Sum squared resid
0.027365
S.E. of regression
0.029243
R-squared
0.987367
Adjusted R-squared
0.986183
F(3, 32)
833.7078
P-value(F)
1.93e-30
Log-likelihood
78.19459
Akaike criterion
-148.3892
Schwarz criterion
-142.0551
Hannan-Quinn
-146.1784
rho
0.625817
Durbin-Watson
0.721663
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