E-views, The following table gives data on the Consumer Price Index (CPI) and the, Econometrics

E-views, Econometrics

Assignment Help:

The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P)
company''s index of 500 common stock prices.
Year CPI Index S&P 500 Index
1978 65.2 96.02
1979 72.6 103.01
1980 82.4 118.78
1981 90.9 128.05
1982 96.5 119.71
1983 99.6 160.41
1984 103.9 160.46
1985 107.9 186.84
1986 109.6 236.34
1987 113.6 286.83
1988 118.3 265.79
1989 124.0 322.84
Source: Economic Report of the President, 1990
A. Import the above data into E-Views. Plot the data on a scattergram with the S&P index on the
vertical axis and CPI on the horizontal axis. This is the second item on your printout for this
homework. Is this data time series, cross sectional, or pooled? Explain!
B. What can you say about the relationship between the two indexes?
C. Consider the following regression model:
Equation 1: (S&P)t = ?0 + ?1CPIt + ?t
(i) Using the data above, construct a table like the one shown in section 2.1.3 on page 39 in
Studenmund and use your calculations to manually compute the regression coefficients
in Equation 1 above (Hint: follow the method described in section 2.1.3).
(ii) Use OLS in E-views to estimate Equation 1 with the above data. Your E-Views output is
the third item on your printout for this homework. Are the results the E-views reports
different from the ones you obtained through the manual computation? Interpret the
coefficient estimates.
(iii) Do the results obtained in part (ii) above make economic sense?
D. What is the R2 of the estimated regression equation (highlight this on your E-views output)?
Given the type of data you used to estimate equation (1) does the R2 indicate an excellent fit, a
good fit, or a bad fit? Explain!

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

E-views, Econometrics

Related Discussions:- E-views

Stationary testing, Help with how to calculate a value from the dickey full...

#title.MULTICOLINEARLITY, HOW TO USE CORRELATION OF THE OFF DIAGONAL ELEMEN...

Matrix., how do l get a co factor of a matrix

HR, the following are the weekly amounts of welfare payments made by the fe...

Production function and general equilibrium, Production Functions, Labor Ma...

Ethical problem in dependent variable, The attached Eviews results are for ...

Political problems of econometrics, kindly help in in doing the assignment

Hetrosedastcity, whits tests

Explain the inflation rate, The following regression was estimated to expla...

JGAUGUjgg3u3aii4tyl''UWY4Ktle.., hgquitwiywiy 6w tt555,jsiuouwjswjuhhurkhjs...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT