Question Sample related Economics

University X

ECO 372, Sec. 1; Midterm 2 Examination (Lab based)

Summer 2010| Total Marks: 40| Time: 1:10 hours

1. Run a multiple linear regression of household consumption (Y) on income ( ), liquid assets () and having baby (). Comment on the results. The data are stored in the SPSS data file “Question 1”                                                                                                                                                                           10

2. The data stored in the SPSS file “Question2” gives the growth rate of imports Y, gross domestic product  and inflation for the United States from 1985 to 1999. It is expected that the level of imports will be greater as GDP and domestic price increase. Stating appropriate hypothesis conduct a test for detecting multicollinearity in the given data. If detected, state the consequence for regressing Y on  and. Also state if you have any suggestions in dealing with this problem.

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3. The data stored in the SPSS file “Question3” gives average wages Y and the number of workers employed X by 30 firms in an industry. Stating appropriate hypothesis conduct a test for detecting heteroscedasticity in the given data. If detected correct it and run the regression that is free from this problem.

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4. The data stored in the SPSS file “Question4” gives the level of inventories Y and sales S, both in billions of dollars, U.S. manufacturing from 1979 to 1998. Stating appropriate hypothesis conduct a test for detecting autocorrelation in the given data. If detected correct it and run the regression that is free from this problem.

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