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