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Q15. For the data of savings and income for the US economy the following model is being estimated: Savings = B1 + Bz (Income) We

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Q15. For the data of savings and income for the US economy the following model is being estimated: Savings = B1 + Bz (Income) We have the following regression results: For the time period 1970 - 85 RSS = 1785.032 df = 10 For the time period 1985 - 95 RSS = 10,005.22 df = 12 For the time period: 1970 -95 RSS = 23,248.30 df = ? (find out) Has the saving income relationship changed pre 1985 as compared to post 1985? Use Chow test to find out (Given critical F value for given df at 1% level of significance = 7.72)

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