Question
Using the data below: Run a regression, REAL GDP = a + b TIME, and present the results of regression. Evaluate the regression results (What
Using the data below:
- Run a regression, REAL GDP = a + b TIME, and present the results of regression.
- Evaluate the regression results (What are the values of R square, Adjusted R square, F statistics? Are these significant at least at 95% level?). What do you conclude from each of these statistics?
- What is the estimate of the coefficient for TIME in this regression? Is it significant at least at 95% level?
- What do you conclude from these regression results?
- How does the coefficient for TIME in REAL GDP regression compare with the coefficient for TIME in NOM GDP regression? What do you conclude from this comparison?
YEAR NOM GDP REAL GDP GINI TIME DUM
1954 390.5 1451.9 38.52 1 0
1955 425.5 1587.6 37.71 2 0
1956 449.4 1652.0 37.26 3 0
1957 474.0 1687.0 37.53 4 0
1958 481.2 1665.2 37.35 5 0
1959 521.7 1792.6 37.89 6 0
1960 542.4 1832.4 37.98 7 0
1961 562.2 1880.3 38.79 8 0
1962 603.9 1999.7 37.80 9 0
1963 637.5 2083.2 37.53 10 0
1964 684.5 2207.9 37.62 11 0
1965 742.3 2356.5 37.44 12 0
1966 813.4 2510.5 37.08 13 0
1967 860.0 2574.7 37.35 14 0
1968 940.7 2703.0 36.25 15 0
1969 1017.6 2772.8 36.45 16 0
1970 1073.3 2766.2 36.85 17 0
1971 1164.9 2876.2 37.05 18 0
1972 1279.1 3060.1 37.35 19 0
1973 1425.4 3210.3 37.15 20 0
1974 1545.2 3134.4 36.55 21 0
1975 1684.9 3131.8 37.05 22 0
1976 1873.4 3292.5 37.05 23 0
1977 2081.8 3435.4 37.35 24 0
1978 2351.6 3606.7 37.45 25 0
1979 2627.3 3618.9 37.75 26 0
1980 2857.3 3467.6 37.85 27 0
1981 3207.0 3528.1 38.45 28 1
1982 3343.8 3465.1 39.55 29 1
1983 3634.0 3648.6 40.05 30 1
1984 4037.6 3886.1 40.05 31 1
1985 4339.0 4032.5 40.55 32 1
1986 4579.6 4178.5 40.85 33 1
1987 4855.2 4274.0 41.05 34 1
1988 5236.4 4426.4 41.35 35 1
1989 5641.6 4549.7 41.95 36 1
1990 5963.1 4562.5 41.75 37 1
1991 6158.1 4521.4 41.75 38 1
1992 6520.3 4647.4 42.45 39 1
1993 6858.6 4746.4 43.60 40 1
1994 7287.2 4917.2 43.60 41 1
1995 7639.7 5013.0 43.30 42 1
1996 8073.1 5145.4 43.70 43 1
1997 8577.6 5344.3 44.00 44 1
1998 9062.8 5560.0 43.90 45 1
1999 9630.7 5780.7 44.10 46 1
2000 10252.3 5953.7 44.20 47 1
2001 10581.8 5975.1 44.60 48 1
2002 10936.4 6079.2 44.30 49 1
2003 11458.2 6227.3 44.50 50 1
2004 12213.7 6465.7 44.70 51 1
2005 13036.6 6675.2 45.00 52 1
2006 13814.6 6852.5 45.20 53 1
2007 14451.9 6970.1 44.40 54 1
2008 14712.8 6833.6 45.00 55 1
2009 14448.9 6734.9 45.60 56 1
2010 14992.1 6875.3 45.60 57 1
2011 15542.6 6909.7 46.30 58 1
2012 16197.0 7054.6 46.30 59 1
2013 16784.9 7205.1 45.90 60 1
2014 17527.3 7403.7 45.60 61 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started