Questions : A. B. Cc. University Hassan I of Casablanca Faculty of Law, Economics, and SocialSciences- Ain Chock Licence Economics & Business Administration Applied Econometrics 1/ Data Analytics, S5- 2023/2024 Prof. S. KOUBAA hours Define briefly the following concepts: Econometrics, Cross-sectional data, time series data, and longitudinal data. Explain the difference between the coefficient of correlation,r, and the coefficient of determination R?. Explain when it is useful to use factor analysis. Provide an example to illustrate your explanation. . Consider that you want to study the impact of “individual experience” in terms of years, “level of education: primary studies, high school, bachelor,...”, and “age” on making a choice between two alternatives: being employed or becoming a self-employed. The two alternatives measure the explained variable of the model. a. Which linear regression Bivariate OR multivariate should be used here? b. Explain why linear regression is not suitable in that case c. Which kind of regression sounds well with that situation? Exercise 1: You are a data analyst in the market research department of a coffee roasting company and you are given the job of identifying the euro price of the company’s coffee in various markets and the associated market share. You discover that market share ranges between 0.20 and 0.55. Based on these findings, you try to estimate the influence of price on market share using the regression indicated below. Regression function: Market share $f = 1.26 — 0.298 * price d, What average market share can be expected when the coffee price is 3 euros? e. You want to increase the market share to 40%. At what average price do you need to set your coffee to achieve this aim? J The regression yields an R? of 0.42. What does this parameter tell rans? g. How large is the total sum of squares when the error sum of squares of the regression is 0.08?Exercise 2: The values of the three variables were inserted into SPSS which gives the following outputs: The accompanying data is on y = profit margin of savings and loan companies in a given year, xx) = net revenues in that year, and x, = number of savings and loan branches offices. x x y » y y x x y 392-7298 )—(0.75 342 6352 0.82 425° 7546 (0.72 361 688571 34S 6361 0.75 441 7931055 332 6636 0.66 358 6369 0.77 449 8097 0.63 307 6806 0.61 366 6546 0.78 470 8468 0.56 3.06 6450 (0.70 3.78 = 6672, 0.84 458 8717 O41 BIL 6402 0.72 382 6890 0.79 469 8991 0.51 321 6368 (0.77 397 ms 0.70 41 9179 (0.47 326 6600.74 407 7327068 478 9318 032 342 669 (0.90 ©. Dependent Variable: Proft Margin 1. Determine the multiple regression equation for the data. 2, Sxesepate and interpret the coefficient of multiple determination, R?. 3. At the 5% significance level, determine if the model is useful for predicting the response. Exercise You are given the job of identifying the market share of a product in various markets. You determine the market share ranges between 51.28% and 61.08%. You try to estimate the factors influencing market share using the regression in outputs given by SPSS.id. Error of the Estimate A. Derive the regression function in algebraic form from the above table. B. Determine R? and the adjusted R?. 7 ° C. How large is the residual sum of squares? a D. Does the model have an explanatory value for determining market share? E. What is a reasonable way to improve the model? F. What happens when the product price is raised by one monetary unit? Exercise 4: Given the following figure, provide a brief definition of homoscedasticity and interpret each one of the three distributions: Y heteroscedastic