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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Your are given the following linear regression:
log(Si) = β'0+β'1Ti+β'2log(Ei)+β'3log(Pi)+β'4log(Hi)+u'i
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You run the model and you obtain the following output:
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Dependent Variable: LOG(S)
Method: Least Squares
Included observations: 38
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Variable Coefficient Std. Error t-statistic Prob.
C 2.984449 0.834359 3.576936 0.0011
T -0.196780 0.047532 -4.139928 0.0002
LOG(E) 0.295497 0.131885 2.240568 0.0319
LOGâ„— 0.385092 0.120864 3.186168 0.0031
LOG(H) -0.669259 0.055553 -12.04713 0.0000
R-squared 0.866335 Mean dependent var 2.083406
Adjusted R-squared 0.850133 S.D dependent var 0.325515
S.E. of regression 0.126016 Akaike info criterion
Sum squared resid 0.524038 Schwarz criterion
Log likelihood 27.47211 Hannan-Quinn criter.
F-statistic Durbin-Watson stat 1.946073
Prob(F-statistic) 0.000000
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1. The F value you obtained is missing. Calculate it and test it for 5% significance level. The Fcritical is given as 2.65.
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2. We do not know which model is better performed. Make use of the Coefficient of Variation and find out which model is better.
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