The demand for roses was estimated using quarterly figures for the period 1971 (3rd quarter) to 1975 (2nd quarter). Two models were estimated and the following results were obtained:

Y = Quantity of roses sold (dozens)
X2 = Average wholesale price of roses ($ per dozen)
X3 = Average wholesale price of carnations ($ per dozen)
X4 = Average weekly family disposable income ($ per week)
X5 = Time (1971.3 = 1 and 1975.2 = 16)
ln = natural logarithm
The standard errors are given in parentheses.
A.ln Yt = 0.627 - 1.273 ln X2t + 0.937 ln X3t + 1.713 ln X4t - 0.182 ln X5t
(0.327) (0.659) (1.201) (0.128)
R2 = 77.8%D.W. = 1.78N = 16

a) How would you interpret the coefficients of ln X2, ln X3 and ln X4 in model A?
What sign would you expect these coefficients to have? Do the results concur with your expectation?
b) Are these coefficients statistically significant?
c) Use the results of Model A to test the following hypotheses:
i) The demand for roses is price elastic
ii) Carnations are substitute goods for roses
iii) Roses are a luxury good (demand increases more than proportionally as income rises)
d) Are the results of (b) and (c) in accordance with your expectations? If any of the tests are statistically insignificant, give a suggestion as to what may be the reason.
e) Do you detect the presence of multicollinearity in the data? Explain.
f) Do you detect the presence of serial correlation? Explain
g) Do the variables X3, X4 and X5 contribute significantly to the...

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For the assignment I will examine whether or not a linear regression model is suitable for estimating the relationship between Human development index (HDI) and its components. Linear Regression is a statistical technique that correlates the change in a variable to other variable/s, the representation of the relationship is called the linear regression model.
Variables are measurements of occurrences of a recurring event taken at...

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Nalan Basturk
Erasmus University Rotterdam Econometric Institute basturk@ese.eur.nl http://people.few.eur.nl/basturk/
Introduction Course Introduction Course Organization Motivation Introduction Today Regression Linear Regression Ordinary Least Squares Linear regression model Gauss-Markov conditions and the properties of OLS...

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Whisman, M.A, Dixon, A.E, and Johnson, B, 1997, ‘Therapists’ perspectives of couple problems and treatment issues in couple therapy, Journal of Family Psychology, Volume 11, pp. 361-66
Wooldridge, J.M ( 2009) ‘Introductory Econometrics- A modern Approach’, 4th Edition, Southern-Western, USA
Appendix
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Figure 2: Families with Children by Income Quintile 1996...

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TUTORIAL 12
25 October 2010
ECO3021S
Part A: Problems
1. State with brief reason whether the following statements are true, false or uncertain:
(a) In the presence of heteroskedasticity OLS estimators are biased as well as inefficient.
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5
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AN ECONOMETRIC ANALYSIS OF ENERGY CONSUMPTION AND ECONOMIC GROWTH IN TURKEY
ABSTRACT
It is commonly maintained that energy is an imporant input of industrial growth and, in this way, economical development. The scarcity of energy resources in the world make the relation between economic development and energy consumption more significant. In this study, the possible cointegration is inspected by Engle-Granger and Johansen Tests and the direction of the causality is...