Question 2

After running a multiple regression on sample of 204 companies in Kuala Lumpur Stock Exchange, following results are generated.

Where;

Y = Companies sales in 1,000 units

X₁ = Fixed asset in 1,000,000

X₂ = Number of sales agents

X₃ = GDP per capita

Required:

1. Calculate the missing standard errors (se) and t-statistics (t). (4 marks)
2. Interpret the sign and coefficient of the models. (6 marks)
3. Which of independent variables are statistically significant at 0.05? (3 marks)
4. Would you reject the null hypothesis that GDP per capita has no effect or whatsoever on sales? (2 marks)
5. What is the overall significance of the regression at the 5 percent level? State the hypotheses and show the necessary calculations. What can you conclude? (8 marks)
6. Can you interpret the coefficients of fixed asset (X₁) and number of sales agents (X₂) as elasticity coefficients? Why or why not? (2 marks)

[Total : 25 Marks]

I am not sure this question got use e-view or not.

Question 2 After running a multiple regression on sample of 204 companies in Kuala Lumpur Stock Exchange, following results are generated. = log(Y) 0.05 + 0.2 X1 0.08 log(x2) + 0.003 log (X3) + _(0.2) ( ) (0.01) (0.001) ( ) (1.4) ( ) C) R2 = 0.58 se = t = TIT Question 2 After running a multiple regression on sample of 204 companies in Kuala Lumpur Stock Exchange, following results are generated. = log(Y) 0.05 + 0.2 X1 0.08 log(x2) + 0.003 log (X3) + _(0.2) ( ) (0.01) (0.001) ( ) (1.4) ( ) C) R2 = 0.58 se = t = TIT