Economics/Statistics

5.19.) Table 5.10 gives annual data on the Consumer Price Index(CPI) and the Wholesale Price Index(WPI), also called Producer Price Index (PPI) for the U.S. Economy for the period 1960-1999. a.) Plot the CPI on the vertical axis and the WPI on the horizontal axis. A priori, what kind of relationship do you expect between the two indexes? Why? b.) Suppose you want to predict one of these indexes on the basis of the other index. Which will you use as the regressand and which as the regressor? Why? c.) Run the regression you have decided in b.). Show the standard output. Test the hypothesis that there is a one-to -one relationship between the two indexes. d.) From the residuals obtained f... click for more

A question about restricted residual sum of squares, F-Test and R squared.

Please could someone show me the steps involved that are required to answer the question attached.

RSS, OLS Residuals

From a cross-section sample on average costs (C) and output (O) for 30 firms (10 small, 10 medium and 10 large) the following OLS estimates were obtained... a) How do I Interpret the estimated equations and use an F Test to test the hypothesis that there is no difference in the cost functions for small, medium and large firms. What assumptions does this test require? Is there any evidence given above that these assumptions are violated and how would I explain this? (b) How can I plot the estimated functions for small, medium and large firms with Output varying between 0 and 25. What conclusions can I draw from this? (c) Would it make sense to estimate the model connecting average... click for more

Durban Watson, hypothesis tests

please see attached

OLS estimator

Please see attached