Parks test, Advanced Statistics

Assignment Help:

The Null Hypothesis - H0: β1 = 0 i.e. there is homoscedasticity errors and no heteroscedasticity exists

The Alternative Hypothesis - H1: β1 ≠ 0 i.e. there is no homoscedasticity error and there is heteroscedasticity

Regression Analysis: lnsqresi versus lntotexp

The regression equation is

lnsqresi = - 4.82 - 0.301 lntotexp

Predictor     Coef  SE Coef      T      P    VIF

Constant   -4.8198   0.6893  -6.99  0.000

lntotexp   -0.3009   0.1523  -1.98  0.048  1.000

S = 2.26403   R-Sq = 0.3%   R-Sq(adj) = 0.2%

Analysis of Variance

 

Source            DF        SS      MS     F      P

Regression         1    20.015  20.015  3.90  0.048

Residual Error  1500  7688.739   5.126

  Lack of Fit     28   160.408   5.729  1.12  0.304

  Pure Error    1472  7528.331   5.114

Total           1501  7708.754

 

Since β1 ≠ 0 and is -0.301, H1 would be accepted suggesting that there are no homoscedasticity errors but there is indication that there is heteroscedasticity.

Regression Analysis: lnsqresi versus lnage

The regression equation is

lnsqresi = - 7.75 + 0.442 lnage

Predictor     Coef  SE Coef      T      P    VIF

Constant   -7.7468   0.9747  -7.95  0.000

lnage       0.4419   0.2739   1.61  0.107  1.000

 

S = 2.26501   R-Sq = 0.2%   R-Sq(adj) = 0.1%

 

Analysis of Variance

 

Source               DF         SS        MS          F      P

Regression         1      13.355    13.355  2.60  0.107

Residual Error  1500  7695.399  5.130

  Lack of Fit        40    131.348   3.284   0.63  0.964

  Pure Error      1460  7564.051  5.181

Total          1501  7708.754

Since β1 ≠ 0 and is 0.442, H1 would be accepted suggesting that there are no homoscedasticity errors but there is indication that there is heteroscedasticity.


Related Discussions:- Parks test

Explain regression through the origin, Regression through the origin : In s...

Regression through the origin : In some of the situations a relationship between the two variables estimated by the regression analysis is expected to pass by the origin because th

Wilcoxon''s ranksum test, Wilcoxon's ranksum test is the distribution free...

Wilcoxon's ranksum test is the distribution free method or technique used as an alternative to the Student's t-test for assessing whether two populations have the same location. G

Regression dilution, Regression dilution is the term which is applied when...

Regression dilution is the term which is applied when a covariate in the model cannot be measured directly and instead of that a related observed value must be used in analysis. I

Partial least squares, Partial least squares is an alternative to the mult...

Partial least squares is an alternative to the multiple regressions which, in spite of using the original q explanatory variables directly, constructs the new set of k regressor v

Explain multiple comparison tests, Multiple comparison tests : Procedures f...

Multiple comparison tests : Procedures for detailed examination of the differences between a set of means, generally after a general hypothesis that they are all equal has been rej

Compute the portfolio expected return, (a) You are trying to develop a stra...

(a) You are trying to develop a strategy for investing in two different stocks, Stock A and Stock B. The anticipated annual return for a $1000 investment in each stock under four

Dummy variables, The variables resulting from the recoding categorical vari...

The variables resulting from the recoding categorical variables with more than two categories into the sequence of binary variables. Marital status, for instance, if originally lab

Simplex method, Economic Interpretation of the Optimum Simplex solution

Economic Interpretation of the Optimum Simplex solution

Tree, Tree is the term from the branch of the mathematics which known as t...

Tree is the term from the branch of the mathematics which known as the graph theory, used to describe any set of the straight-line segments joining the pairs of points in some pro

Matlab help, Need help with Matlab assignments.

Need help with Matlab assignments.

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