4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?
4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,