Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following two models are being considered for studying the behaviour of poverty rates in a country (Y, in percentage) over the time-period 1970-2010

 

The following two models are being considered for studying the behaviour of poverty rates in a country (Y, in percentage) over the time-period 1970-2010 (t-ratios are reported in parentheses). Model A: = 54.094 +0.122 lt R = Schwarz criterion= Adjusted Model B: (196.910) (10.491) 0.898, Akaike info criterion = 34.553. 37.546 , = 53.777 +0.177t - 0.0016t t = (153.1) (3.730) (-5.777) R = 0.907 Adjusted Akaike info criterion = 32.571 Schwarz criterion= 37.061 (i) Comment on the change in poverty rate, as per Model A results. (ii) Describe the behaviour of poverty rate as per Model B results. (iii) Using the measures of goodness of fit reported in the regression results, which model would you choose? Give reasons.

Step by Step Solution

3.44 Rating (170 Votes )

There are 3 Steps involved in it

Step: 1

Solution i AytAt 0122 AytAt 122 It means that poverty ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Learning From Data

Authors: Roxy Peck

1st Edition

495553263, 978-1285966083, 1285966082, 978-0495553267

More Books

Students also viewed these Finance questions