Question

Assuming that a project manager is interested in looking in scalingup the efficiency of the project with the determinants: Price, project capital, income of the employees, and corruption in order to identify the driving forces of competitiveness. Given 39 years data you are given, answer the following questions. Note that TSS=1,233,636.00; ESS=1,097,519.00 and Probability >F = 0.006

EfficiencyCoefficient Std. Err.[95% Confidence Interval]

Income 5.639438 1.801161 1.979038, 9.299838

price -0.1418010.3118394 -0.775535 , 0.4919329

Project Capital6.2381922.773586 0.6015868 , 11.8748

Corruption index3.148463 1.22406 -17.62932 , 23.92624

Constant-20.71968 89.03593 -201.6624 , 160.2231

a) Compute the Coefficient of determination and interpret it at 5% level of significance.

b)Is the Model good to fit with data?

c) Calculate the t test for each independent variable

d) Which explanatory variables are policy variables in order to scale up the efficiency of a given project in market at 5% level of significance?

e) It is strongly recommended to conduct the post-estimation tests before a researcher presents here/his regression results. Therefore, the following post estimation tests for the model are presented in equation 1

Post EstimationTests Chi2 test P-value >/Chi2/

Normality 21.3 0.0188

Autocorrelation 2.10 0.1543

Heteroskedasticity 1.24 0.2647

1) Write down the hypothesis testing for each post-estimation test shown above

2) What problem do you observe? If there is, what solution do you recommend?