2. Following is the summary of Eviews output for a multiple linear regression model whereY = annual household expenses (RM thousand)X1 = annual income (RM thousand)X2 = annual wealth (RM thousand)X3 = saving interest rate (%)Dependent Variable: LOG(Y)Sample: 1970 2019Included observations: 50VariableсLOG(X1)LOG(X2)X3Coefficient-4.677118.048732.01270-0.02689Std. Error2.419073.790491.249340.013610.789533 Durbin-Watson statAdjusted R-squaredS.E. of regressionSum squared resid0.011934 Heteroskedasticity Test White0.007121 Prob. Chi-Square (6)(a) Explain the meaning of the partial slope coefficient for LOG(X1) and X3.1.58921910.160320.0708(b) At 10% significance level, do annual income and annual wealth, individually affect theannual household expenses?(c) Calculate the coefficient of determination and explain its meaning.

Partial Slope Coefficient shows the relationship between the independent variable and the dependent…

2. Following is the summary of Eviews output for a multiple linear regression model where Yannual household expenses (RM thousand) X1 = annual income (RM thousand) X2= annual wealth (RM thousand) X3 = saving interest rate (%) Dependent Variable: LOG(Y) Sample: 1970 2019 Included observations: 50 Variable с LOG(X1) LOG(X2) X3 Coefficient -4.67711 8.04873 2.01270 -0.02689 Adjusted R-squared S.E. of regression Sum squared resid Std. Error 2.41907 3.79049 1.24934 0.01361 0.789533 Durbin-Watson stat 0.011934 Heteroskedasticity Test White 0.007121 Prob. Chi-Square (6) (a) Explain the meaning of the partial slope coefficient for LOG(X1) and X3. 1.589219 10.16032 0.0708 (b) At 10% significance level, do annual income and annual wealth, individually affect the annual household expenses? (c) Calculate the coefficient of determination and explain its meaning.

2. Following is the summary of Eviews output for a multiple linear regression model where Yannual household expenses (RM thousand) X1 = annual income (RM thousand) X2= annual wealth (RM thousand) X3 = saving interest rate (%) Dependent Variable: LOG(Y) Sample: 1970 2019 Included observations: 50 Variable с LOG(X1) LOG(X2) X3 Coefficient -4.67711 8.04873 2.01270 -0.02689 Adjusted R-squared S.E. of regression Sum squared resid Std. Error 2.41907 3.79049 1.24934 0.01361 0.789533 Durbin-Watson stat 0.011934 Heteroskedasticity Test White 0.007121 Prob. Chi-Square (6) (a) Explain the meaning of the partial slope coefficient for LOG(X1) and X3. 1.589219 10.16032 0.0708 (b) At 10% significance level, do annual income and annual wealth, individually affect the annual household expenses? (c) Calculate the coefficient of determination and explain its meaning.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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