1 views

Uploaded by Faisal Naveed Siddiqui

Management lecture

save

- Corruption, Norms and Legal Enforcement Diplomats in NY
- WHITE PAPER Multicollinearity in CSAT Studies
- 11ch10
- Demand
- Week4_ITS.pdf
- Testing Models
- MLR Introduction
- Notes
- TheAceStudent_ BUS 308 Week 5 Final Paper
- Pereyra - What Said the Neoclassical and Endogenous Growth Models About Portugal
- l81
- SDV
- Thesis Poster Homework
- Studenmund_top1.107
- Regression analysis of index model (International company stock).pdf
- The Influence of Training Characteristics on the Effect of Exercise Training
- Determinants of Credit Risk in Ethiopian Private Commercial Banks
- Ied Wp02 Finger
- Crm
- EViews 7 Object Ref
- Correlation v2
- Basic Concepts
- Hansen-Schroeder
- Table of Content for Rena's Market Analysis for Real Estate
- Measurement Errors in a Spatial Context
- Hansen, Van Der Stede - 2004 - Multiple Facets of Budgeting an Exploratory Analysis
- BIDM_Group5_seectionA
- Statistical Analysis
- MTH302
- Metrics
- Swat-Travel-Guide-English-Nov-2011.pdf
- stakeholder mgt.pdf
- BDPS2005
- Tracy Brian Psychology of Selling Manual
- Swat-Travel-Guide-English-Nov-2011.pdf
- Academic Research & Writing.pdf
- [Tracy Brian] Principles of Success(Bookos.org)
- Newbie How to Start Running
- CATIA V5 Training
- pdf help.pdf
- Chapter5 Flow Diagrams
- Transmittal Review Remarks.2_1
- pdf help.pdf
- TPI.pdf
- Finite element analysis.pdf
- HDD_FEA
- BDPS2005.pdf
- HDD_FEA.pdf

You are on page 1of 15

Summary of previous Lecture

Standardized variables Functional forms

Today discussion Functional forms of model Multiple regression model .

the signs of the estimated coefficients and their statistical significance. a model with a lower 𝑟 2 may be quite acceptable. . What is of greater importance is the theoretical underpinning of the chosen model. If a model is good on these criteria.general comments In general one should not overemphasize the 𝑟 2 measure in the sense that the higher the 𝑟 2 the better the model.Choice of functional form. 𝑟 2 increases as we add more regressors to the model.

.

The salient feature of the model is that slope coefficient measures the elasticity of Y w.r. Relative or proportional change Percentage change . respectively.t X.r. Elasticity: Percentage change in Y w. Absolute change.The log-linear model or double log model Suppose the exponential function The OLS estimators 𝛼 and 𝐵2 obtained will be best linear unbiased estimators of α and β2.t X.

.

. Interpretation? It suggests that if total personal expenditure goes up by 1 percent.90. the expenditure on durable goods goes up by about 1.90 percent.Interpretation of log linear model The elasticity of EXDUR with respect to PCEX is 1. on average.

employment and productivity. and governments are often interested in finding out the rate of growth of certain economic variables. . businesspeople.Semi log or Lin log or log Lin model Economists. Such models are called semi-log models. such as population. Where r is the compound rate of growth of Y. money supply.

.

this is equal to an annual growth rate of 2.Log-linear model A model in which regressand is logarithmic will be called a log linear model Interpretation: The slope coefficient measures the relative change in Y for a given absolute change in the value of the regressor. .743 percent per quarter. Roughly.97 percent. Example: Expenditure on services increased at the rate of 0.

.

Multiple Regression Model Bivariate model is inadequate in practice as regression model is not only confine to two variables. or regressors is called Multiple regression model. . or regressand. The simple extension is three variable regression. For example demand theory. Models in which the dependent variable. Y depends on two or more explanatory variables.

.

All the assumptions of the CLRM hold: The interpretation of the coefficients is the same as in simpler regression model The meaning of partial coefficients: β2 measures the change in the mean value of Y.notations General form of three variable regression model is. holding the value of X constant. .Three variable model. OLS method is used to estimate the parameter. The coefficients are partial regression coefficients.

Formulas • Consult any of the book that are recommended in the course out line and remember the formulas of 𝐵1 and 𝐵2 Variance of 𝐵1 and 𝐵2 Standard error of 𝐵1 and 𝐵2 𝑅2 𝑅 2 .

- Corruption, Norms and Legal Enforcement Diplomats in NYUploaded byjohanpeleman
- WHITE PAPER Multicollinearity in CSAT StudiesUploaded byanuj112358
- 11ch10Uploaded byUday Pandey
- DemandUploaded bydshyllon7428
- Week4_ITS.pdfUploaded byLee Tze-Houng
- Testing ModelsUploaded byDaniel Man
- MLR IntroductionUploaded byAndrew Watson
- NotesUploaded byRavi Rathod
- TheAceStudent_ BUS 308 Week 5 Final PaperUploaded byteacher.theacestud
- Pereyra - What Said the Neoclassical and Endogenous Growth Models About PortugalUploaded byrhroca2762
- l81Uploaded byMarko Nikolic
- SDVUploaded byM Tdeu Cordeiro
- Thesis Poster HomeworkUploaded byposhdavid
- Studenmund_top1.107Uploaded byRamsha Sohail
- Regression analysis of index model (International company stock).pdfUploaded byAriful Islam
- The Influence of Training Characteristics on the Effect of Exercise TrainingUploaded bymaracio
- Determinants of Credit Risk in Ethiopian Private Commercial BanksUploaded byAtakelt Hailu
- Ied Wp02 FingerUploaded byMehran Zaryoun
- CrmUploaded byfskithuda
- EViews 7 Object RefUploaded byBernard T. Asia
- Correlation v2Uploaded bySc Khoo
- Basic ConceptsUploaded byhsrinivas_7
- Hansen-SchroederUploaded byprakashsan
- Table of Content for Rena's Market Analysis for Real EstateUploaded bytashapa
- Measurement Errors in a Spatial ContextUploaded byGustavo Malaguti
- Hansen, Van Der Stede - 2004 - Multiple Facets of Budgeting an Exploratory AnalysisUploaded byDaniele Bernd
- BIDM_Group5_seectionAUploaded byMandley Sourabh
- Statistical AnalysisUploaded byKiran Gowda
- MTH302Uploaded byMisbah Sarwar
- MetricsUploaded byThyra Lindberg Wysocki

- Swat-Travel-Guide-English-Nov-2011.pdfUploaded byFaisal Naveed Siddiqui
- stakeholder mgt.pdfUploaded byFaisal Naveed Siddiqui
- BDPS2005Uploaded byFaisal Naveed Siddiqui
- Tracy Brian Psychology of Selling ManualUploaded byFaisal Naveed Siddiqui
- Swat-Travel-Guide-English-Nov-2011.pdfUploaded byFaisal Naveed Siddiqui
- Academic Research & Writing.pdfUploaded byFaisal Naveed Siddiqui
- [Tracy Brian] Principles of Success(Bookos.org)Uploaded byFaisal Naveed Siddiqui
- Newbie How to Start RunningUploaded byFaisal Naveed Siddiqui
- CATIA V5 TrainingUploaded byFaisal Naveed Siddiqui
- pdf help.pdfUploaded byFaisal Naveed Siddiqui
- Chapter5 Flow DiagramsUploaded byFaisal Naveed Siddiqui
- Transmittal Review Remarks.2_1Uploaded byFaisal Naveed Siddiqui
- pdf help.pdfUploaded byFaisal Naveed Siddiqui
- TPI.pdfUploaded byFaisal Naveed Siddiqui
- Finite element analysis.pdfUploaded byFaisal Naveed Siddiqui
- HDD_FEAUploaded byFaisal Naveed Siddiqui
- BDPS2005.pdfUploaded byFaisal Naveed Siddiqui
- HDD_FEA.pdfUploaded byFaisal Naveed Siddiqui