Purchase Solution

Regression analysis

Not what you're looking for?

Ask Custom Question

Suppose you have cross-section data on income (y) and electricity consumption (x) for three regions and you have regressed ln x on an intercept and ln y for each region and for the full sample, obtaining the following results:

Estimated Intercept Std Error. Slope Std. Error SSE n
Region A 0.02 0.008 1.10 0.05 48 92
Region B 0.01 0.003 0.90 0.1 35 82
Region C 0.015 0.001 0.85 0.08 17 32
All regions0.03 0.0015 0.88 0.05 112 206

a. Test (at the 5% level) that this equation is the same for all regions.

b. Assuming that these equations are the same (regardless of your answer to (a)), test (at the 5% level) that the common income elasticity is 1.

c. Suppose you know that the intercepts are definitely different for all three regions. Explain what you would do to answer parts (a) and (b) given this knowledge (i.e. outline any changes in estimation and inference relative to your previous answers).

Purchase this Solution

Solution Summary

Step by step method for computing regression model s given in the answer.

Solution Preview

Please see the answers

Regression / Difference Testing (ECONOMETRICS)
Suppose you have cross-section data on income (y) and electricity consumption (x) for three regions and you have regressed ln x on an intercept and ln y for each region and for the full sample, obtaining the following results:

Estimated Intercept Std Error. Slope Std. Error SSE n
Region A 0.02 0.008 1.10 0.05 48 92
Region B 0.01 0.003 0.90 0.1 35 82
Region C 0.015 0.001 0.85 0.08 17 32
All regions 0.03 0.0015 0.88 0.05 112 206

a) Test (at the 5% level) that this equation is the same for all regions.
Here t test can be used to test whether the intercept and ...

Purchase this Solution


Free BrainMass Quizzes
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.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

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.

Measures of Central Tendency

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