2. Consider the following regression model and the result of estimation:distance Bo + B,angle + u%3DWhere:distance = distance (in feet) traveled by a baseball,angle = the angle (in degrees) the baseball was hit,%3!u= regression error.Dependent Variable: DISTANCEMethod: Least SquaresSample: 1 13Included observations: 13VariableCoefficientStd. Errort-StatisticProb.C.ANGLE32.930840.7855425.1468191.9811910.00030.0731169.48911.556309a) Breusch-Godfrey test has been performed that produced the following result. Discussthe test result.Breusch-Godfrey Serial Correlation LM Test:Null hypothesis: No serial correlation at up to 2 lagsF-statistic6.534685 Prob. F(2,9)7.698535 Prob. Chi-Square(2)0.01770.0213Obs R-squaredb) RESET test has been performed that produced the following result. Discuss the testresult.Ramsey RESET TestEquation: EQ01Specification: DISTANCE C ANGLEOmitted Variables: Powers of fitted values from 2 to 3Value475.826060.71504dfProbabilityF-statisticLikelihood ratio(2, 9)0.00000.00004. c) Given below is the scatter plot between angle and distance.300275250225200-175-150.12510010203040506070ANGLERedraw the scatter plot and add the fitted line of the above-estimated model onthe same plot. Use this plot to explain the test result obtained in (b).(i)Based on the finding in c(i), propose the correct model and write the modelspecification.(ii)DISTANCE

e (in feet) traveled by a baseball, in degrees) the baseball was hit, or. ent Variable: DISTANCE Least Squares 1 13 d observations: 13 Variable Coefficient Std. Error t-Statistic Prob. 32.93084 0.785542 5.146819 1.981191 0.0003 0.0731 169.4891 ANGLE 1.556309 rey test has been performed that produced the following result. n-Godfrey Serial Correlation LM Test: pothesis: No serial correlation at up to 2 lags tic squared 6.534685 Prob. F(2,9) 7.698535 Prob. Chi-Square(2) 0.0177 0.0213 s been performed that produced the following result. Discuss t RESET Test

e (in feet) traveled by a baseball, in degrees) the baseball was hit, or. ent Variable: DISTANCE Least Squares 1 13 d observations: 13 Variable Coefficient Std. Error t-Statistic Prob. 32.93084 0.785542 5.146819 1.981191 0.0003 0.0731 169.4891 ANGLE 1.556309 rey test has been performed that produced the following result. n-Godfrey Serial Correlation LM Test: pothesis: No serial correlation at up to 2 lags tic squared 6.534685 Prob. F(2,9) 7.698535 Prob. Chi-Square(2) 0.0177 0.0213 s been performed that produced the following result. Discuss t RESET Test

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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