2. Consider the following regression model and the result of estimation: distance = Bo + Biangle...
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2. Consider the following regression model and the result of estimation: distance = Bo + Biangle + u Where: distance = distance (in feet) traveled by a baseball, angle = the angle (in degrees) the baseball was hit, u= regression error. Dependent Variable: DISTANCE Method: Least Squares Sample: 1 13 Included observations: 13 Variable C ANGLE F-statistic Obs R-squared Coefficient 169.4891 1.556309 Ramsey RESET Test Equation: EQ01 Breusch-Godfrey Serial Correlation LM Test: Null hypothesis: No serial correlation at up to 2 lags Std. Error F-statistic Likelihood ratio 32.93084 0.785542 a) Breusch-Godfrey test has been performed that produced the following result. Discuss the test result. Specification: DISTANCE C ANGLE Omitted Variables: Powers of fitted values from 2 to 3 Value 475.8260 60.71504 t-Statistic 6.534685 Prob. F(2,9) 7.698535 Prob. Chi-Square(2) 5.146819 1.981191 (2 marks) b) RESET test has been performed that produced the following result. Discuss the test result. df (2,9) 2 Prob. 0.0003 0.0731 Probability 0.0000 0.0000 0.0177 0.0213 (2 marks) c) Given below is the scatter plot between angle and distance. (1) (ii) DISTANCE 300 275. 250 225 200- 175- 150. 125 100 0 10 20 30 40 50 60 70 ANGLE Redraw the scatter plot and add the fitted line of the above-estimated model on the same plot. Use this plot to explain the test result obtaine in (b). (3 marks) Based on the finding in c(i), propose the correct model and write the model specification. (1 mark) (Total marks: 8) 2. Consider the following regression model and the result of estimation: distance = Bo + Biangle + u Where: distance = distance (in feet) traveled by a baseball, angle = the angle (in degrees) the baseball was hit, u= regression error. Dependent Variable: DISTANCE Method: Least Squares Sample: 1 13 Included observations: 13 Variable C ANGLE F-statistic Obs R-squared Coefficient 169.4891 1.556309 Ramsey RESET Test Equation: EQ01 Breusch-Godfrey Serial Correlation LM Test: Null hypothesis: No serial correlation at up to 2 lags Std. Error F-statistic Likelihood ratio 32.93084 0.785542 a) Breusch-Godfrey test has been performed that produced the following result. Discuss the test result. Specification: DISTANCE C ANGLE Omitted Variables: Powers of fitted values from 2 to 3 Value 475.8260 60.71504 t-Statistic 6.534685 Prob. F(2,9) 7.698535 Prob. Chi-Square(2) 5.146819 1.981191 (2 marks) b) RESET test has been performed that produced the following result. Discuss the test result. df (2,9) 2 Prob. 0.0003 0.0731 Probability 0.0000 0.0000 0.0177 0.0213 (2 marks) c) Given below is the scatter plot between angle and distance. (1) (ii) DISTANCE 300 275. 250 225 200- 175- 150. 125 100 0 10 20 30 40 50 60 70 ANGLE Redraw the scatter plot and add the fitted line of the above-estimated model on the same plot. Use this plot to explain the test result obtaine in (b). (3 marks) Based on the finding in c(i), propose the correct model and write the model specification. (1 mark) (Total marks: 8)
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