Purchase Solution

# Model Transformation

Not what you're looking for?

What method has been used to transform Model 1 to Model 2? Equations for Model 1 and Model 2 are as follows:

Model 1

Ct = 26.19 + 0.6428GNPt - 0.4398Dt + et

Model 2

Ct /GNPt = 25.92(1/GNPt)- 0.4598(Dt/GNPt)+ et

C represents Consumption expenditures
GNP represents Gross National Product
D represents defense spending

Sample is quarterly from 1960 to 1969 (time series). Test for first order serial correlation.

##### Solution Summary

The solution addresses what method has been used to transform Model 1 to Model 2? Equations for Model 1 and Model 2 are as follows:

Model 1

Ct = 26.19 + 0.6428GNPt - 0.4398Dt + et

Model 2

Ct /GNPt = 25.92(1/GNPt)- 0.4598(Dt/GNPt)+ et

C represents Consumption expenditures
GNP represents Gross National Product
D represents defense spending

Sample is quarterly from 1960 to 1969 (time series). Test for first order serial correlation.

##### Solution Preview

Model 2 is actually Model 1 divided by GNPt:
(1)Ct = 26.19 + 0.6428GNPt - 0.4398Dt + et
(2)(Ct/GNPt) = 25.92(1/GNPt)- 0.4598(Dt/GNPt)+ et ...

##### Free BrainMass Quizzes

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

##### Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.