Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me construct a business or economic data set suitable for a multivariable regression analysis. Include measured quantities (cardinal numerical variables) that you believe
Please help me construct a business or economic data set suitable for a multivariable regression analysis. Include measured quantities (cardinal numerical variables) that you believe should be related to each other.For a meaningful regression you should have at least 30 observations for both your dependent and independent (at least two) variables.
- Describe your data.Where do they come from? How are the variables being measured? In what units? Why do think these data will be have a relationship, or be correlated? Do think this is likely to be a "cause and effect" relationship? Do you have a hypothesis about how these data may be related?
- Do you think your relationships are (in an approximate sense) most likely to be: direct or inverse?Explain why you think this is likely to be the case.
- What kind of specification do you think will best fit your data? Experiment by the different kinds of OLS regression specifications discussed in class: linear, quadratic, log-linear, and combinations of these.
- Find the model with the most explanatory power and significant estimates.Describe what your regression output shows regarding the statistical properties of your model.
- What does this model suggest regarding the relationships between your variables?
- Do you think your data more or less satisfy OLS regression assumptions?Explain why? Or why not?
- Based on 6), do you think your analysis is reliable?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started