Question: This is a one drive link with the first sheet having the data required and the second having the questions I need help with. Link:

This is a one drive link with the first sheet having the data required and the second having the questions I need help with.

Link: https://1drv.ms/x/s!AmBKsnf4PUSthDxXcCZPk_X1XCFE?e=ecGU7l

This is a one drive link with the first sheet having thedata required and the second having the questions I need help with.

Question 1: FOR. ALL STUDENTS (13 Marks) *Please begin this question on a new page {a} Estimate the following regression model by least squares and include your EViews output in your answer [1 Marks} po = ,5'1 + ghuruidity + gdewpoint + tbse + ame + snw + Bywindspeed + e [b] Interpret your esthuate of g. {2 Marks] {c} 'What is tho estimated difference between the expected value of PM\" when the wind eonics from a southeasterly direction compared to the case where the wind comes from a northeasterly direction1 assuming humidity, dew point and wind speed are the same. Show your work and provide a full interpretation. (4 Marks} {d} Test at the 1% level of signicance the null hypothesis that the SDHLhEH-SLEI'IF wind has the same effect on the expected value of Flt-I15 concentration as the northeasterly adnd. auming all other variables remain constant, against the alternative hypothesis that the uortheasterly wind reduces PM\" concentration more than the southcastcrly wind. Use a t-statistic approach and write down all the steps used to conduct your test. You can use Eviears to calculate the test statistics. {IE Marks} Question 2: FOR. ALL STUDENTS (15 Marks) {a} We suspect that the relationship between humidity and PM\" concentration may he a quadratic relationship. We extend the model in Question 1 to allow for this relationship as follows. Es Question 2: FOR ALL STUDENTS (15 Marks) (a) We suspect that the relationship between humidity and PMglg concentration may he a quadratic relationship. We extend the model in Question 1 to allow for this relationship as follows. Es timate this model and include your output. [1 Marks) pm25 = '81 + ghumidity + ghumidity2 + ddewpoint + gse + gne + ,87nw + gwindspeed + e [b] Using the Ftest at 5% signicance levelJ test whether humidity helps explain variation in PMng concentration. You must write out the test in full including null and alternative hypotheses stated in terms of the parameters. Compute the Fstatistic manually by estimating both the restricted and unrestricted model. Make sure to write down the restricted model and unrestricted model fully1 and show the Eviews output for the restricted model. (7 Marks] Page 2 of 11 (c] What do the estimates for g and g tell you about the relationship between humidity and Phil-2'5 concentration, keeping all other variables constant. Hint: Think about the signs of these coeicients and what they say about the shape of the quadratic function. Make sure to explain your answer in the context of the question. (3 Marks) (d) For your model in question 2 (a)? nd and interpret the marginal emect of humidity on IBM-2'5 concentration when humidity is (i) 25 percentage points, and (ii) 80 percentage points. (4 Marks}

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