Question One The saving function of a random sample of ten families is given as where denote...

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Question One The saving function of a random sample of ten families is given as where denote aggregate savings, denotes disposable income real interest rate. The sample data are given in the following...

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Question One

The saving function of a random sample of ten families is given as where denote aggregate savings, denotes disposable income real interest rate. The sample data are given in the following table:-

20	25	25	30	35	40	43	42	50	55
100	110	115	120	140	145	145	140	150	160
2	2	3	2	3	4	3	4	5	5

Required:

a) Find the regression equation of the savings on disposable income and real interest rate XXXXXXXXXXmarks)

b) Estimate the savings when the disposable income is 180 and real interest rate is 6

(2 marks)

c) Compute the coefficient of multiple determination and adjusted value (2 marks)

d) Test the significance of the individual regression coefficient at the 5% level of significance

(9 marks)

e) Estimate the confidence limits of the individual regression coefficient at the 95% confidence level. (3 marks)

f) Test the overall significance of regression at 5% level.

Answered Same Day Dec 26, 2021

David · Accepted Answer

The saving function of a random sample of ten families is given as where denote aggregate savings, denotes disposable income real interest rate. The sample data are given in the following table:-
	
	20
	25
	25
	30
	35
	40
	43
	42
	50
	55
	
	100
	110
	115
	120
	140
	145
	145
	140
	150
	160
	
	2
	2
	3
	2
	3
	4
	3
	4
	5
	5
Required:
a) Find the regression equation of the savings on disposable income and real interest rate (10 marks)
b) Estimate the savings when the disposable income is 180 and real interest rate is 6
(2 marks)
c) Compute the coefficient of multiple determination and adjusted value (2 marks)
d) Test the significance of the individual regression coefficient at the 5% level of significance
(9 marks)
e) Estimate the confidence limits of the individual regression coefficient at the 95% confidence level. (3 marks)
f) Test the overall significance of regression at 5% level.
Solution:

Question One The saving function of a random sample of ten families is given as where denote aggregate savings, denotes disposable income real interest rate. The sample data are given in the following...

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20	25	25	30	35	40	43	42	50	55
100	110	115	120	140	145	145	140	150	160
2	2	3	2	3	4	3	4	5	5

20	25	25	30	35	40	43	42	50	55
100	110	115	120	140	145	145	140	150	160
2	2	3	2	3	4	3	4	5	5

20	25	25	30	35	40	43	42	50	55
100	110	115	120	140	145	145	140	150	160
2	2	3	2	3	4	3	4	5	5