PROBLEM#4: An econometrician regress gross private investment (gpi) on gross private savings (gps). From the output below interpret statistics in bold. Also interpret the tests given under residual analysis, p-values are given in brackets. Are the residuals i.i.d?? The estimation sample is: 1959 - 2007 Coefficient Std.Error t-value t-prob t- Constant -78.7210 27.48 -2.86 0.0062 = gps 1.10740 0.02908 38.1 0.0000 Sigma 114.868; RSS 620149.806; R^2 0.968607; F(1,47) = 1450 [0.000] Adj.R^2 0.96794; AIC 12.3654; se(gpi) 641.526 Residual Analysis 1. AR test: F(2,45) 57.419 [0.0000]**(HO: No Serial correlation) 2. JB test: Chi^2(2) 5.7146 [0.0574] (HO: Series is normal) 3. Hetero test: F(2,46) 5.4854 [0.0073]** (HO: No hetro using squared regressors) 4. Hetero-X test: F(2,46) 5.4854 [0.0073]** (HO: No hetro using squared and product regressors) 5. RESET test: F(2,45) 12.037 [0.0001]**(HO: no specification biased) 6. DURBIN-WATSON STATISTIC: d= 0.372896 (HO: no autocorrelation) = = = = PROBLEM#4: An econometrician regress gross private investment (gpi) on gross private savings (gps). From the output below interpret statistics in bold. Also interpret the tests given under residual analysis, p-values are given in brackets. Are the residuals i.i.d?? The estimation sample is: 1959 - 2007 Coefficient Std.Error t-value t-prob t- Constant -78.7210 27.48 -2.86 0.0062 = gps 1.10740 0.02908 38.1 0.0000 Sigma 114.868; RSS 620149.806; R^2 0.968607; F(1,47) = 1450 [0.000] Adj.R^2 0.96794; AIC 12.3654; se(gpi) 641.526 Residual Analysis 1. AR test: F(2,45) 57.419 [0.0000]**(HO: No Serial correlation) 2. JB test: Chi^2(2) 5.7146 [0.0574] (HO: Series is normal) 3. Hetero test: F(2,46) 5.4854 [0.0073]** (HO: No hetro using squared regressors) 4. Hetero-X test: F(2,46) 5.4854 [0.0073]** (HO: No hetro using squared and product regressors) 5. RESET test: F(2,45) 12.037 [0.0001]**(HO: no specification biased) 6. DURBIN-WATSON STATISTIC: d= 0.372896 (HO: no autocorrelation) = = = =