Statistical Tables 0.1 0.05 0.05 0.025 0.02 0.01 0.01 0.005 0.1 Appendix 1: t distribution Two tails 0.2 One tail df 20 1.33 30 1.31 40 1.30 50 1.30 60 1.30 1.72 1.70 1.68 1.68 1.67 2.09 2.04 2.02 2.01 2.00 2.53 2.46 2.42 2.40 2.39 2.84 2.75 2.70 2.68 2.66 4 5 6 7 8 2.45 Appendix 2: F-distribution (a=0.05) df2\df1 1 2 3 20 4.35 3.49 3.10 30 4.17 3.32 2.92 40 4.08 3.23 2.84 4.03 3.18 2.79 60 4.00 3.15 2.76 2.87 2.69 2.61 2.56 2.53 2.71 2.53 2.45 2.40 2.37 2.60 2.42 2.34 2.29 2.25 2.51 2.33 2.25 2.27 2.18 2.13 2.10 50 2.20 2.17 Question 3 (a) Table 2 reported the estimated equation (3) and (4), where both equations were used to estimate the relationship between food expenditure (E) and total expenditure (T) in India. Equation (3) Table 2 = 94.21 + 0.437 T; S.e. (0.078) R2 = 0.3698 N= 55 = -1283 .91 + 257.27 In T; s.e. (45.43) R2 = 0.3769 N= 55 Equation (4) (i) Identify the functional forms of Equation (3) and (4). (2 marks (ii) Interpret the slope coefficient of Equation (3) and (4). (4 marks (iii) Compare Equation (3) and (4). Which one is better? (4 marks (iv) Briefly explain the criteria that should be considered when comparing models. (4 marks (b) Briefly discuss double-log model and log-lin model with an example for each model. (6 marks [Total: 20 marks Statistical Tables 0.1 0.05 0.05 0.025 0.02 0.01 0.01 0.005 0.1 Appendix 1: t distribution Two tails 0.2 One tail df 20 1.33 30 1.31 40 1.30 50 1.30 60 1.30 1.72 1.70 1.68 1.68 1.67 2.09 2.04 2.02 2.01 2.00 2.53 2.46 2.42 2.40 2.39 2.84 2.75 2.70 2.68 2.66 4 5 6 7 8 2.45 Appendix 2: F-distribution (a=0.05) df2\df1 1 2 3 20 4.35 3.49 3.10 30 4.17 3.32 2.92 40 4.08 3.23 2.84 4.03 3.18 2.79 60 4.00 3.15 2.76 2.87 2.69 2.61 2.56 2.53 2.71 2.53 2.45 2.40 2.37 2.60 2.42 2.34 2.29 2.25 2.51 2.33 2.25 2.27 2.18 2.13 2.10 50 2.20 2.17 Question 3 (a) Table 2 reported the estimated equation (3) and (4), where both equations were used to estimate the relationship between food expenditure (E) and total expenditure (T) in India. Equation (3) Table 2 = 94.21 + 0.437 T; S.e. (0.078) R2 = 0.3698 N= 55 = -1283 .91 + 257.27 In T; s.e. (45.43) R2 = 0.3769 N= 55 Equation (4) (i) Identify the functional forms of Equation (3) and (4). (2 marks (ii) Interpret the slope coefficient of Equation (3) and (4). (4 marks (iii) Compare Equation (3) and (4). Which one is better? (4 marks (iv) Briefly explain the criteria that should be considered when comparing models. (4 marks (b) Briefly discuss double-log model and log-lin model with an example for each model. (6 marks [Total: 20 marks