We model energy use per capita of 131 countries in a given year as follows Lntpes pc 0 1Lnypcpenn 2Lnypcpenn2 3LnGasprice 4LnAnnualprecip 5TempColdest 6TempWarmest 7ffrents 8LnPop 9LnLand D incomegroups u The variables are defined as follows Lntpes pc log of total primary energy consumption per capita (ktoe) Lnypcpenn log of GDP per capita (USD) Lnypcpenn2 square of log of GDP per capita (USD) Ln gasprice log of pump price for gasoline (USD liter) LnAnnualprecip log of annual precipitation (mm) Temp coldest average temperature for the coldest month in a year (in C) Temp warmest average temperature for the warmest month in a year (in C) ffrents Fossil Fuel Rents ( of GDP) LnPop log of population (in millions) LnLand log of land area (in km2) I Incomegroup refers to income groups 1 , 2 and 3 , low, mid and high income countries Log always refers to natural logs or ln here Log referrers to natural logarithm Interpret the constant and its p value Interpret the coefficient on gas price and its p value Interpret the coefficient on annual precipitation and carry out a t test to determine the significance of the coefficient Interpret the coefficient on population and its p value 12 marks The above model belongs to the class of nonlinear equations Calculate the turning point of the nonlinear relationship 3 marks Is this a U shaped or inverted U shaped relationship 1 marks Analyse the relationship between energy use per capita and GDP pc based on these insights How does energy use per capita change with GDPpc Prepare a graph 4 marks Please define MLR 2 and describe if MLR 2 is likely to hold or not 3 marks Please define MLR 4 and describe if MLR 4 is likely to hold or not Linear regression ffrents Inpop Inland Robust Coef Std Err 038338 0328958 Iincomegro 2 1032733 2283648 Tincomegro 3 0828519 1007342 8 303336 2 49965 cons Number of obs F(11, 119) Prob F R squared Root MSE Intpes pc Lnypcpenn 9599562 4732335 2 03 0 045 1 897906 Inypcpenn2 0256192 3 73 0 000 0447282 0954567 In gasprice 2392021 0566569 4 22 0 000 3513885 temp coldest 01857 005238 3 55 0 001 0289417 temp warmest 0166677 016009 1 04 0 300 0150318 In annualprecip 806395 0539954 0 12 0 906 1005213 0028204 0028546 0028319 0469675 1228807 0546541 0104828 P t 0 99 0 325 1 23 0 223 0 099 1 66 0 45 0 652 0 82 0 412 3 45 0 001 131 143 13 0 0000 0 8941 36402 95 Conf Intervall 3489118 2823156 3 531989 0229066 1461852 1270157 0081983 0483671 1133114 0084728 0289456 119791 5554584 1166118 13 07468

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We model energy use per capita of 131 countries in a given year as follows: Lntpes_pc = 0+1Lnypcpenn+ 2Lnypcpenn2+3LnGasprice+4LnAnnualprecip+ 5TempColdest+ 6TempWarmest+7ffrents+8LnPop+9LnLand+D_incomegroups+u The variables are defined

We model energy use per capita of 131 countries in a given year as follows:

Lntpes_pc = 0+1Lnypcpenn+ 2Lnypcpenn2+3LnGasprice+4LnAnnualprecip+ 5TempColdest+ 6TempWarmest+7ffrents+8LnPop+9LnLand+D_incomegroups+u

The variables are defined as follows:

Lntpes_pc = log of total primary energy consumption per capita (ktoe)

Lnypcpenn =log of GDP per capita (USD)

Lnypcpenn2 = square of log of GDP per capita (USD)

Ln_gasprice = log of pump price for gasoline (USD/liter)

LnAnnualprecip= log of annual precipitation (mm)

Temp_coldest = average temperature for the coldest month in a year (in C)

Temp_warmest= average temperature for the warmest month in a year (in C)

ffrents = Fossil Fuel Rents (% of GDP)

LnPop = log of population (in millions)

LnLand = log of land area (in km2)

I_Incomegroup = refers to income groups ?1? , ?2? and ?3?, low, mid and high income countries.

*?Log? always refers to natural logs or ?ln? here.

Log referrers to natural logarithm!

Interpret the constant and its p-value.

Interpret the coefficient on gas price and its p-value.
Interpret the coefficient on annual precipitation and carry out a t-test to determine the significance of the coefficient.
Interpret the coefficient on population and its p-value.

12 marks

The above model belongs to the class of nonlinear equations. Calculate the turning point of the nonlinear relationship.

3 marks

Is this a U-shaped or inverted U-shaped relationship?

1 marks

Analyse the relationship between energy use per capita and GDP pc based on these insights. How does energy use per capita change with GDPpc? Prepare a graph!

4 marks

Please define MLR 2 and describe if MLR 2 is likely to hold or not?

3 marks

Please define MLR 4 and describe if MLR 4 is likely to hold or not?

Linear regression ffrents Inpop Inland Robust Coef. Std. Err. .038338 .0328958 _Iincomegro_2 .1032733 .2283648 _Tincomegro_3 -.0828519 .1007342 8.303336 2.49965 _cons Number of obs F(11, 119) Prob > F R-squared Root MSE Intpes_pc Lnypcpenn -.9599562 4732335 -2.03 0.045 -1.897906 Inypcpenn2 0256192 3.73 0.000 .0447282 .0954567 In_gasprice -.2392021 0566569 -4.22 0.000 -.3513885 temp_coldest -.01857 .005238 -3.55 0.001 -.0289417 temp_warmest .0166677 .016009 1.04 0.300 -.0150318 In annualprecip .806395 .0539954 0.12 0.906 -.1005213 .0028204 .0028546 -.0028319 -.0469675 -.1228807 .0546541 -.0104828 P>|t| = 0.99 0.325 -1.23 0.223 0.099 1.66 0.45 0.652 -0.82 0.412 3.45 0.001 = 131 143.13 0.0000 0.8941 .36402 [95% Conf. Intervall -.3489118 -.2823156 3.531989 -.0229066 .1461852 -.1270157 -.0081983 .0483671 .1133114 .0084728 0289456 .119791 .5554584 .1166118 13.07468

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Step: 1

Interpret the constant and its pvalue The constant in this model represents the expected value of log of total primary energy consumption per capita when all independent variables are equal to zero Th... blur-text-image