Please summarise the work for easy understanding thank you

The question is complete

8.1 (a) Using the data in Problem 7.1 (page 301), estimate a multiple regression model of the birth rate explained by GNP the growth rate and the income ratio. Comment upon: (1) the sizes and signs of the coefficients, (i1) the significance of the coefficients, (ili the overall significance of the regression. (b) How would you simplify the model? (c) Test for the joint significance of the coefficients on growth and the income ratio. (d) Repeat the above steps for all 26 observations, Comment. (e) Do you feel your understanding of the birth rate is improved after estimating the multiple regression equation? (f) What other possible explanatory variables do you think it might be worth investigating? 8.2 The following data show the number of adults in each of 17 households and whether or not the family contains at least one person who smokes, to supplement the data in Problem 7.2 on alcohol spending (see page 301). Family Adults Smoker Family Adults Smoker 10 11 340 Barrow. Michool. . Pearson Education Limited, 2017. ProQuest Ebook Central. http:webockcentral proquest.com/abbrunel detail.action?dod D-5186281. created from brunelu on 2019-11-11 04:04:04. Problems (a) Estimate a multiple regression model of expenditure on alcohol, using income. the number of adults and whether there is a smoker in the household as the three explanatory variables. Do the coefficients have the expected signs? Interpret your results. (b) Test the significance of the individual coefficients and of the regression as a whole. (c) Should the model be simplified? (d) Calculate the elasticity of alcohol expenditure with respect to income. Do this first using the linear model and then one based on logarithms of these two variables (but keep 'Adults' and 'Smokers' in linear form). (e) Estimate the effect of one additional adult in the family on their spending on alcohol. (f) To compare the alcohol expenditure of families with a smoker and families without, one could try two different methods: (i) use a two sample t test to compare mean expenditures, or (ii) run a regression of alcohol expenditure on the 'Smoker' variable, using all 17 observations. Try both of these methods. What do you conclude? 8.3 Using the results from Problem 8.1, forecast the birth rate of a country with the following character- istics: GNP equal to $3000, a growth rate of 3% p.a. and an income ratio of 7. (Construct the point estimate only). 8,4 (This problem continues the analysis from Problem 8.2.) Given the following data for a family: Family Income Adults Smoker 18 700 (a) Predict the level of alcohol expenditure for this family. (b) If their actual expenditure turned out to be 32.50, how accurate would you judge the prediction?8.3 Using the results from Problem 8.1. forecast the birth rate of a country with the following character- istics: GNP equal to $3000, a growth rate of 3% p.a. and an income ratio of 7. (Construct the point estimate only). 8.4 (This problem continues the analysis from Problem 8.2.) Given the following data for a family: Family Income Adults Smoker 18 700 2 (a) Predict the level of alcohol expenditure for this family. (b) If their actual expenditure turned out to be 32.50, how accurate would you judge the prediction? 8.5 How would you most appropriately measure the following variables? (a) social class in a model of alcohol consumption (b) crime (c) central bank independence from political interference. 8.6 As Problem 8.5, for (a) the output of a car firm, in a production function equation, (b) potential trade union influence in wage bargaining. (c) the performance of a school. 8.7 Would it be better to use time-series or cross-section data in the following models? (a) the relationship between the exchange rate and the money supply (b) the determinants of divorce (c) the determinants of hospital costs. Explain your reasoning. 8.8 As Problem 87, for (a) measurement of economies of scale in the production of books. 341 Barow, Michael eisStatistics for Economic Pearson Education Limited, 2017. ProQuest Chock Central, hitpolebookcentral proquest.com/libbrunel_ detail -5186281 Created from bruney on 2019-11-11 04 04 04. Chapter 8 . Multiple regression (b) the determinants of cinema attendances, (c) the determinants of the consumption of perfume. 8.9 How would you estimate a model explaining the following variables? (a) airline efficiency. (b) infant mortality. (c) bank profits. You should consider such issues as whether to use time-series or cross-section data; the explanat tory variables to use and any measurement problems; any relevant data transformations; the expected results. 8.10 As Problem 89, for (a) investment. (b) the pattern of UK exports (Le which countries they go to). (c) attendance at football matches.8.11 R. Dornbusch and S. Fischer (in R.E. Caves and L.B. Krause. Britain's Economic Performance, Brookings, 1980) report the following equation for predicting the UK balance of payments B = 0.29 + 0.240 + 0.17 In Y - 0.004: - 0.10 In P - 0.24 In C (.56) (5.9) (2.5) (3.8) (3.2) (3.9) R= = 0.76, s, = 0.01.n = 36 (quarterly data 1970: 1-1978: 1) where the current account of the balance of payments as a percentage of gross domestic product (a balance of payments deficit of 3% of GDP would be recorded as -3.0. for example) the rate of unemployment the OECD index of industrial production a time trend the price of materials relative to the GDP deflator (price index) C: an index of UK competitiveness (a lower value of the index implies greater competitiveness). (In indicates the natural logarithm of a variable) (a) Explain why each variable is included in the regression. Do they all have the expected sign for the coefficient? (b) Which of the following lead to a higher BOP deficit (relative to GDP): (1) higher unemployment: (ii) higher OECD industrial production; (iii) higher material prices and (iv) greater competitiveness? (c) What is the implied shape of the relationship between 8 and (i) U. (1) Y? (d) Why cannot a double log equation be estimated for this data? What implications does this have for obtaining elasticity estimates? Why are elasticity estimates not very useful in this context? (e) Given the following values of the explanatory variables, estimate the state of the current account (point estimate): unemployment rate = 10, OECD index = 110, timetrend = 37. materials price index = 100, competitiveness index = 90. Copyright 8.12 In a cross-section study of the determinants of economic growth (National Bureau of Economic Research, Macroeconomic Annual, 1991). Stanley Fischer obtained the following regression equation: 342 Barrow, Michael,