Suppose that per capita income of a country (Y) depends on the percent share of labor...
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Suppose that per capita income of a country (Y) depends on the percent share of labor force in agriculture (X). The cross-sectional data for the variables in 10 developing countries are given in the table below. Country bl A B C D E F = G H I J Per capita Income (Yi) 6 8 8 7 7 12 9 8 9 10 Percent in Agriculture (Xi) 9 10 A. Using Excel program, compute the sizes of sample regression coefficients, b₁ and bo, in the data above. Use the following formula for the computation and show your work. Σ [(Xi-Xbar)(Yi-Ybar)] Σ (XI-Xbar)² where, Xbar = EXi/N, Ybar = EYi/N. 8 7 10 4 5 5 6 7 and b0 Ybar - bl (Xbar) B. Now compute the same by and bo by using the EViews/R program and report the estimation results. Report the estimation results in the following format. Are the estimated coefficients, b0 and b1, the same as in A above? Discuss. Yi = SE ( t-stat ( R² = + ) ( ) ( DW Xli N C. If the percentage of labor force in agriculture in another developing country was 8 percent, what level of per capita income would you expect the country have (based on your sample regression coefficients computed above)? Show your work. Suppose that per capita income of a country (Y) depends on the percent share of labor force in agriculture (X). The cross-sectional data for the variables in 10 developing countries are given in the table below. Country bl A B C D E F = G H I J Per capita Income (Yi) 6 8 8 7 7 12 9 8 9 10 Percent in Agriculture (Xi) 9 10 A. Using Excel program, compute the sizes of sample regression coefficients, b₁ and bo, in the data above. Use the following formula for the computation and show your work. Σ [(Xi-Xbar)(Yi-Ybar)] Σ (XI-Xbar)² where, Xbar = EXi/N, Ybar = EYi/N. 8 7 10 4 5 5 6 7 and b0 Ybar - bl (Xbar) B. Now compute the same by and bo by using the EViews/R program and report the estimation results. Report the estimation results in the following format. Are the estimated coefficients, b0 and b1, the same as in A above? Discuss. Yi = SE ( t-stat ( R² = + ) ( ) ( DW Xli N C. If the percentage of labor force in agriculture in another developing country was 8 percent, what level of per capita income would you expect the country have (based on your sample regression coefficients computed above)? Show your work.
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A Computing the sample regression coefficients using Excel Step 1 Calculate the mean values of the independent and dependent variables Xbar SUMXi10 78... View the full answer
Related Book For
Modeling the Dynamics of Life Calculus and Probability for Life Scientists
ISBN: 978-0840064189
3rd edition
Authors: Frederick R. Adler
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