Question: Suppose that a researcher estimated a consumption function and obtained the result from EVIEWS as in Figure 6, however, there was somewhere malfunction of

Suppose that a researcher estimated a consumption function and obtained the result

from EVIEWS as in Figure 6, however, there was somewhere malfunction of

Suppose that a researcher estimated a consumption function and obtained the result from EVIEWS as in Figure 6, however, there was somewhere malfunction of the printer and did not print out some part of statistics information. Figure 6 EViews [Equation: UNTITLED Workfile: TAB801] Eile Edit Objects View Procs Quick Options Window Help View Procs Objects Print Name Freeze Estimate Forecast Stats Resids Dependent Variable: PCE Method: Least Squares Date: 02/24/99 Time: 15:05 Sample: 1956 1970 Included observations: 15 Where PDI personal disposable income Variable C PDI R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood Durbin-Watson stat Coefficient Std. Error t-Statistic Prob. 12.76207 4.681799 #$$$$$$%$$ 0.0173 0.881248 0.011427 0.0000 0.997819 Mean dependent var 367.6933 0.997651 S.D. dependent var 68.68264 &&982 144.0346 -38.24911 1.339337 Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) 5.366547 5.460954 5947.715 0.000000 (a) Calculate the t-statistics of each coefficient in Figure 6. (b) Construct a 95 percent confidence interval for the coefficient of PDI. (c) Use the statistics information from Figure 6 to calculate the S.E of regression. (d) Use the 5% significant level of t-values to test the hypothesis that PDI is a statistically significant independent variable. (State the hypothesis and statistics to be tested). (15 marks)

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