Fit a simple linear regression model to the data, Microeconomics

Assignment Help:

1. Refer to the data in the file "asm2Q1.xls" on the annual number of fatalities (FATALS, y) from gas and dust explosion in coal mines for the years 1915 to 1978 and the number of labour hours (HOURS, x, in millions) of production work.

a) Fit a simple linear regression model to the data and construct a 95% prediction interval for y when x = 60.

b) Use Szroeter's test to investigate the constant variance assumption of the simple linear regression model in a). What conclusion can you draw at 5% level?

c) Suppose instead, a new regression model is fitted using the transformed y value y*=sqrt(y), ie, the model

y* = sqrt(y) = b0 +b1x + e

is fitted. Construct again a 95% prediction interval for y (not y*) when x = 60 based on this transformed model.

d) Use Szroeter's test to investigate the constant variance assumption for the model in c). What conclusion can you draw at 5% level?

e) Compare the two intervals in a) and in c). Which one would you recommend? Explain.


Related Discussions:- Fit a simple linear regression model to the data

Production function, A competitive firm produces output using three fixed f...

A competitive firm produces output using three fixed factors and one variable factor. The firm’s short-run production function is q = 154x – 5x2, where x is the amount of variable

The hypothesis of rational expectations, The Hypothesis of Rational Expecta...

The Hypothesis of Rational Expectations : In the General Theory (Keynes, 1936) we noted that the state of expectations was taken as given. There was, in addition, explici

Welfare economics, what do you mean by social welfare function

what do you mean by social welfare function

What is extracellular digestion, Extracellular digestion is that in which f...

Extracellular digestion is that in which food breaking into utile molecules that can be internalized by the cell is completed in the extracellular space, i.e., outside the cell. In

Demographicwindow, what do you understand by demographic window acess by in...

what do you understand by demographic window acess by india

What do you meant by enclosures, Q. What do you meant by Enclosures? En...

Q. What do you meant by Enclosures? Enclosures: A historic process in Britain and other European countries, in very early years of capitalism, in that lands formerly held and u

Price elasticity of demand , Describe what the price elasticity of demand i...

Describe what the price elasticity of demand is and why it is of interest in examining markets.  Might it be beneficial in the airline industry?  Why?

Law of cardinal utility approach, ??????? ??? ???? ??? # 100 ?????? #Minimu...

??????? ??? ???? ??? # 100 ?????? #Minimum ?????? ?????

Monopolistic competition and oligopoly, Monopolistic Competition and Oligop...

Monopolistic Competition and Oligopoly: It was recognized that most industries exhibit the features of monopolistic competition in real-life. However, it must be pointed out t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd