Reference no: EM131447010
1. What is your research question?
2. What is the hypothesized relationship?
3. Using the data for your final project, run a regression with the dependent variable and only the main independent variable of interest. Explain your findings and what it means about the relationship.
4. Add in your control variables. Explain your findings. What happens to the relationship in part 3?
5. Go through each of the assumptions of OLS to see if your model meets the assumptions.
a. X & Y are linearly related
b. xi are nonstochastic variables whose values are fixed
c. The error has zero expected value: E(εi) = 0
d. The error term has a constant variance for all observations: E(εi2) = σ2
e. The elements of the random variable are εi are statistically independent: (εiεj) = 0 for all I ≠ j
f. The error term is normally distributed.
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What is the hypothesized relationship
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