E-views Essay Example | Topics and Well Written Essays - 2750 words

E-views - Essay Exampledependent var 1946.249 S.E. of throwback 455.4699 Akaike info criterion 15.33487 Sum squ ared resid 3526698. Schwarz criterion 15.72491 Log likelihood -183.6859 Hannan-Quinn criter. 15.44305 F-statistic 60.17375 Durbin-Watson stat 1.916498 Prob(F-statistic) 0.000000 (a) The estimated equation is Y = 148.220572044 - 1.28739451915*X1 + 1.80962162969*X2 + 0.59039598443*X3 - 21.4816857405*X4 + 5.61940285601*X5 - 14.51467253*X6 + 29.3602583452*X7 The interpretation of the estimated coefficients is provided below Table 3 Coefficient values and their interpretation Coefficient Value Interpretation Coefficient 1 148.2206 This is the intercept. ... ase in the manhour requirement by approximately 0.60 hours per week Coefficient 5 -21.4817 for an increase of the communal use area by an additional square feet will imply a reduction of the manhour requirement by 21 hours per month Coefficient 6 5.619403 If the number of building wings increases by one, the additional mon thly manhour requirement rises by 5.61 Coefficient 7 -14.5147 for an increase of operational berthing capacity by an additional unit, the monthly manhour requirement falls by 14.51 Coefficient 8 29.36026 For every additional number of rooms, approximately 29.4 additional manhours per month become necessary (b) Testing for significances Here, n=25 and we tryout at the 95% level (0.05). The test is two sided. For these specifications, the critical value . From the quaternate column of table 2 we see that only the coefficients of X2, X4, X6 and X7 exceed the critical value (in absolute terms). Thus, these are the only variables that are found to be significant, i.e., the coefficients are statistically different from zero. It can be check from the column of probabilities it is only these coefficients that have p-values less than 0.05. Therefore, the conclusion is that only the monthly number of check ins, common use area, operational berthing capacity and number of rooms have statist ically significant effects on the predicted variable, the required manhours to run the establishment. Problem 2 The test of joint significance is an F test of the trivial hypothesis that all coefficients are equal to zero, i.e., the parameters are jointly insignificant. In Eviews this is equivalent to using the Wald test for testing the restriction The 5% critical F-statistic value for one restriction and 17 degrees of freedom (n=25, k=8) is 4.451. Observe from table 2 that the computed