The following two models are being considered for studying the behaviour of poverty rates in a...

 

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The following two models are being considered for studying the behaviour of poverty rates in a country (Y, in percentage) over the time-period 1970-2010 (t-ratios are reported in parentheses). Model A: Ý = 54.094 +0.122 lt R² = Schwarz criterion= Adjusted Model B: (196.910) (10.491) 0.898, Akaike info criterion = 34.553. 37.546 Ý, = 53.777 +0.177t - 0.0016t² t = (153.1) (3.730) (-5.777) R² = 0.907 Adjusted Akaike info criterion = 32.571 Schwarz criterion= 37.061 (i) Comment on the change in poverty rate, as per Model A results. (ii) Describe the behaviour of poverty rate as per Model B results. (iii) Using the measures of goodness of fit reported in the regression results, which model would you choose? Give reasons. The following two models are being considered for studying the behaviour of poverty rates in a country (Y, in percentage) over the time-period 1970-2010 (t-ratios are reported in parentheses). Model A: Ý = 54.094 +0.122 lt R² = Schwarz criterion= Adjusted Model B: (196.910) (10.491) 0.898, Akaike info criterion = 34.553. 37.546 Ý, = 53.777 +0.177t - 0.0016t² t = (153.1) (3.730) (-5.777) R² = 0.907 Adjusted Akaike info criterion = 32.571 Schwarz criterion= 37.061 (i) Comment on the change in poverty rate, as per Model A results. (ii) Describe the behaviour of poverty rate as per Model B results. (iii) Using the measures of goodness of fit reported in the regression results, which model would you choose? Give reasons.

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Solution i AytAt 0122 AytAt 122 It means that poverty ... View the full answer