Econometric

BT20003 ASAS EKONOMETRIK

GROUP ASSIGNMENT

GROUP 11

LECTURE NAME: SAFRI SAIMAN

GROUP MEMBER:

| NAME | MATRIC NO |

1 | JUDITH ANGELLA ANAK LANSAM | BB12110212 |

2 | JULIA SAMIUS | BB12110213 |

3 | KARMILA ARAB BINTI HASAN | BB12110225 |

4 | KAVEEND NAIR A/L BUSKARAN | BB12110227 |

5 | KONG BOON KIAT | BB12110237 |

6 | KONG CHEE KHUEN | BB12110238 |

Estimate the parameter for the relationship between FZ and FX.

a) Explain and interprete the estimated model and parameters.

y-estimation is the estimated value of the Fz variable for selected Fx value. To find the estimated model the formula :

Ŷ=β1 – β2X where ;

Ŷ is y estimation

β1 is beta 1

β2 is beta 2

X is any value of the independent variable that is selected.

Before finding the value of value estimated, find the β2 and then β1. The formulas for β1 and β2 are :

β2 = Σ XiZiΣXi² where ;

€XiZi is the total of XiZi base on the schedual

€Xi2 is the total of Xi2

β1 = Ῡ – β2X where ;

Ῡ is the total of Fz divided by 29

Β2 is the beta 2

X is the total of Fx divided by 29

Example :

β2= ΣXiZiΣXi2= 688179466552=1.48 | β1= Y- β1X=276.97-1.48(83.59)=276.97-123.7132=153.26 | Y=β1-β2X=153.26-1.48(58)=153.26-85.84=67.42 |

b) will the correlation be different if you regress the variables reversely?

when we regress the variables reversely, the correlation will be no different value between both variables. The actual correlation is r= 0.015 and after we regress the variables reversely, there are no changes and remain the same value of correlation between two variables which is r=0.015. this is because we using the same formula to find the correlation value so that when we regress the variables reversely, the value of correlation remain the same.

c) what can you say about the strength of the variables relationship?

The relationship is positive because the sign of the...