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    Questions: ECON 322 Dr. Hammoudeh

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    Adam Khaleel
    The document provides instructions for running a regression analysis on demand for raspberries data. It includes regressing quantity on price, income, and a lagged quantity variable. It asks to report the estimated linear demand equation with t-statistics, R-squared, and calculate short-run and long-run price and income elasticities from the estimated coefficients. It also asks to suggest another independent variable to add to the equation.

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    Questions: ECON 322 Dr. Hammoudeh

    Uploaded by

    Adam Khaleel
    41 views4 pages
    The document provides instructions for running a regression analysis on demand for raspberries data. It includes regressing quantity on price, income, and a lagged quantity variable. It asks to report the estimated linear demand equation with t-statistics, R-squared, and calculate short-run and long-run price and income elasticities from the estimated coefficients. It also asks to suggest another independent variable to add to the equation.

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    Steps for Doing Regression

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    The document provides instructions for running a regression analysis on demand for raspberries data. It includes regressing quantity on price, income, and a lagged quantity variable. It asks to report the estimated linear demand equation with t-statistics, R-squared, and calculate short-run and long-run price and income elasticities from the estimated coefficients. It also asks to suggest another independent variable to add to the equation.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    41 views4 pages

    Questions: ECON 322 Dr. Hammoudeh

    Uploaded by

    Adam Khaleel
    The document provides instructions for running a regression analysis on demand for raspberries data. It includes regressing quantity on price, income, and a lagged quantity variable. It asks to report the estimated linear demand equation with t-statistics, R-squared, and calculate short-run and long-run price and income elasticities from the estimated coefficients. It also asks to suggest another independent variable to add to the equation.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    ECON 322

    DR. HAMMOUDEH
    QUESTIONS
    QUESTION 1:
    Run Q on the regressors: P (price), I (income), other variabes an! agge! Q to
    capture habit "orming# S$ip the "irst ro% because o" the empt& ce in this ro%#
    'rom the regression output, %rite !o%n the estimate! inear !eman! e(uation %ith
    t)statistics un!er the estimate! coe""icients# In a!!ition, %rite !o%n the R)s(uare*
    Statistica signi"icance o" T)statistics is given b& the P)vaues# There are three eves
    o" signi"icance: +,, -, an! +.,# Ignore the P)vaues given in this output because
    the sampe perio! is ver& sma# Instea!, use the "oo%ing stan!ar! signi"icance
    eves
    I" t)statistics / +#01 (pus or minus) then there is no statistica signi"icance at an&
    eve#
    I" +#01 / t)statistics / +#20, there is statistica signi"icance at the +., eve#
    I" +#20 / t)statistics / 3#-4, there is statistica signi"icance at the -, eve
    I" t)statistics 5 3#-4, there is statistica signi"icance at the +, eve#
    QUESTION 2:
    6acuate the short run an! ong run price an! income easticities o" !eman! "rom
    the estimate! coe""icients in the regression e(uation, using the averages "or the
    (uantit&, price an! income (s$ip the "irst ro% %hen &ou cacuate the averages)
    Short Run P-elasticity for a linear Eq. = slope of price*(average price/average quantity)
    Long Run P -elasticity for a linear Eq. = slope of price / (!- slope of the lagge"
    varia#le)$*(average Price/average quantity).
    Short Run %- elasticity for a linear Eq. = slope of inco&e*(average inco&e/average
    quantity)
    Long Run P- elasticity for a linear Eq. = slope of inco&e / (!- slope of the lagge"
    varia#le)$*(average inco&e/average quantity).
    Average = sum/n s!"# $"rs% r&'(.
    T)e s)&r%*run an+ ,&ng run "n-&me e,as%"-"%"es are -a,-u,a%e+ %)e same 'a.. Here %)e
    s,&#e "s $&r "n-&me.
    1/2 1
    ECON 322
    DR. HAMMOUDEH
    QUESTION 3:
    6an &ou thin$ o" another in!epen!ent variabe that &ou ma& a!! to the above
    e(uation* 7hat %i the sign o" this variabe be* Speci"& the name o" this variabe#
    8o not incu!e Weather in the !eman! e(uation.
    STEPS TO 8O RE9RESSIONS
    /e '",, es%"ma%e a +eman+ $un-%"&n us"ng ,"near regress"&ns.
    0 :inear Regression : T)e $&,,&'"ng +eman+ $un-%"&n )as $&ur var"a1,es.
    Q
    t
    ; a
    +
    < a
    3
    P
    t
    < a
    1
    I
    t
    < a
    4
    Q
    t)+

    ')ere: Q "s %)e Quan%"%. &$ g&&+ 23
    4 "s %)e 4r"-e3
    I "s %)e In-&me3
    Q
    %*1
    "s %)e ,agge+ Q3 an+
    % "s %)e %"me #er"&+
    0 In#u% &r -&#. %)e +a%a &n an E2CE5 s)ee%3 -,ear,. s#e-"$."ng %)e "epen"ent '
    var"a1,e %& 1e %)e 6uan%"%. Q
    %
    (3 an+ %)e in"epen"ent ( varia#les %& 1e %)e #r"-e &$
    g&&+ 2 4
    %
    (3 "n-&me I
    %
    (3 an+ %)e ,agge+ Q7
    %*1.
    0 T& en%er va,ues $&r %)e ,agge+ Q
    %*1
    3 .&u ma. cop& %)e ')&,e +a%a un+er Q
    %
    an+
    paste "% "n a ne' -&,umn a++e+ %& %)e g"ven s)ee% un+er %)e ,agge+ Q
    %*1
    . 4as%"ng
    s)&u,+ s%ar% su-) %)a% %)e $"rs% &1serva%"&n un+er Q
    %
    '",, 1e %)e $"rs% &1serva%"&n
    un+er %)e ,agge+ Q
    %*1
    s%ar%"ng '"%) %)e se-&n+ r&'.
    0 8& %& TOO:S menu an+ -,"-! 8=T= =N=:>SIS. 4"-! u# RE9RESSION
    $r&m %)e ANA59SIS TOO5S #resen%e+ "n %)e #&# u# menu an+ -,"-! O?#
    0 :"rs% )"g),"g)% %)e !epen!ent variabe ce range $r&m %)e s#rea+s)ee% s%ar%"ng
    $r&m %)e se-&n+ r&' s!"# %)e r&' '"%) %)e em#%. -e,,(3 an+ -,"-! O? &n %)e
    RE8RESSION #&# u# menu %& "nser% %)e se,e-%e+ +a%a range "n %)e In#u% 9 range
    1&7. S"m",ar,. se,e-% %)e re,evan% +a%a range "or a the in!epen!ent variabes
    %&ge%)er "n-,u+"ng ,agge+ Q an+ "nser% %)e se,e-%e+ +a%a range "n %)e In#u% 2 range
    1&7. D&u1,e -)e-! .&ur -e,, ranges.
    0 In %)e OUTPUT OPTIONS3 -,"-! Ne% 7or$sheet 4,. an+ sa. O?. T)e
    Regress"&n &u%#u% '",, 1e ava",a1,e %& .&u &n a ne',. -rea%e+ '&r!s)ee%.
    1/2 2
    ECON 322
    DR. HAMMOUDEH
    H&' %& a++ 8=T= =N=:>SIS %& .&ur TOO:S menu "$ .&ur -&m#u%er +&esn;% )ave "%<
    0 I$ %)e TOO:S menu +&es n&% )ave 8=T= =N=:>SIS3 .&u -an a++ "% 1. +&"ng
    %)e $&,,&'"ng.
    0 O#en TOO:S
    0 C,"-! &n =88)INS
    0 In-,u+e =N=:>SIS TOO:P=6? $r&m %)e #&# u# menu +"a,&g 1&7 an+ -,"-!
    O?.
    0 8& 1a-! %& TOO5S an+ .&u '",, $"n+ DATA ANA59SIS a% %)e 1&%%&m &$ %)e
    menu.
    DATA=ASE IS =E5O/(
    1/2 3
    ECON 322
    DR. HAMMOUDEH
    4as%e %)e $&,,&'"ng +a%a1ase "n%& an e7-e, s#rea+s)ee%.
    H&me'&r! ass"gnmen%
    8eman! "or Raspberries s!"# %)e $"rs% r&'(
    >ear Q
    @
    P
    @ A
    P&
    :agge! Q
    1>?@ @ 3A B
    1B
    1>?B B 2C ? 1D @
    1>?D B 2D ? 1? B
    1>?C D 2D > 1? B
    1>?? C 2B 1A 1> D
    1>?> 11 23 1A 22 C
    1>>A 13 2A 11 2@ 11
    1>>1 1D 1@ 1B 2@ 13
    1>>2 21 11 1B 2B 1D
    1>>3 2@ > 1? 2C 21
    1>>@ 2? C 2A 2C 2@
    1>>B 33 B 22 2C.B 2?
    1>>D 3D @ 2B 2C.B 33
    1>>C 3D.B 3.? 2D 2C.B 3D
    1>>? 3> 3 3A 2C.B 3D.B
    1>>> @A 2.> 31
    2?
    3>
    2AAA @2 2.@ 33
    2?
    @A
    2AA1 @B 2.1 3D
    2?.B
    @2
    3..3 40 3#.. 4. 3B#- 4-
    1/2 @

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