ECONOMETRICS Exam, Summer 2010 1. The linear model of weekly expenditure (euro/household) depending on the weekly income i = 24.

.45 + 0.51x i . If the income increases with 15 euro/week what is the (euro/household) is: y amount of change in the weekly expenditure level for a household? 2. Write the correct title of the following chart:: ............................................................................., in Romania between 1991-1999

Knowing that the linear model is: yi=1,2258xi comment the significance of the regression coefficient. 3. A determination coefficient of 0,945 shows that: a) a proportion of 94,5% from all factors influence on y variable variation is explained by the model. b) a proportion of 94,5% from all factors influence on y variable variation is unexplained by the model c) the weight of significant factors influence on y variable variation is 94,5% d) the weight of explanatory variables influence on y variable variation is 94,5% e) the model is valid. 4. About the simple correlation coefficient, r, between the x and y variables, from the simple regression i = 32,5 6,4 xi , it can be said that: model: y a) -1 < r < 0 and the model is not well chosen, b) -1 < r < 0 and the model is well chosen, c) r > 1 and the model is valid, d) -1 < r < 0, it shows an inverse correlation between x and y variables. e) 0 < r < 1, it shows that the model is globally significant, f) -1 < r < 0, it shows that the model is not globally significant, g) 0 < r < 1, it shows a direct correlation between x and y variables. 5. The Scatter Plot of the x and y variables, having a powerful, linear and direct correlation, looks like::

Import (mld. $)

12 11 10 9 8 7 6 5 4

6 import

7 8 9 Export (mld. $) imp. theoretic

6. The Scatter Plot of the x and y variables, having a weak, linear and inverse correlation, looks like:

7. Write a model having four explanatory variables: 8. For the following regression table: a) Write the linear model ....... b) Which is the number of observations ........................................................... c) Which is the number of explanatory variables .............................................. d) Comment the model validity writing the corresponding indicator ............................... e) Comment the significance of the multiple correlation coefficient writing its value ................... f) For each estimator make a comment about its significance and specify its confidence interval:

g) Is the regression is globally significant? Indicate the significance level: h) Write a general conclusion about this multiple regression model:
SUMMARY OUTPUT Regression Statistics Multiple R 0.838264 R Square 0.702687 Adjusted R Square 0.613493 Standard Error 2.597069 Observations 14 ANOVA df Regression 3 Residual Total 10 13 Coefficient s 35.72254 0.801901 -0.38136

SS 159.4095 67.44767 226.8571 Standard Error 10.9942 0.298436 0.156581

MS 53.1364 9 6.74476 7 t Stat 3.24921 8 2.68701 2 -2.43556

F 7.87818 1

Significance F 0.005452

P-value 0.00873 2 0.02281 6 0.03511 4

Lower 95% 11.22594 0.136944 -0.73025

Upper 95% 60.21914 1.466857 -0.03248

Intercept X Variable 1 X Variable 2

X Variable 3

-0.03713

0.052023

-0.71377

0.49169 4

-0.15305

0.078782