Regressionanalysisforthedemandfunction

ECO-301: MilestoneThreeDirections
Submittheresultsofyourregressionanalysisforthedemandfunctionyouareestimatingforyourterm project. Include:  Thedatausedtoestimatethedemandmodel  Theresultsoftheanalysis,ananalysisoftheresults  Descriptionofremainingissuethatneedstobeaddressedbeforethefinalpaperissubmitted.
Usingyourinventoryofdatacollected,youwillestimateandperformvariousanalyseswhichwilllead youtoanevaluation. Attheconclusionofyouranalysisyouwilladdresshowthisexamplecaninform otherreal-worlddecisionmakinginotherorganizationsaswellasyourowndecision-makingand managementskills.
StatisticalAnalysisandTests 1. EvaluateAdjR2. 2. Eachvariable(independentvariableshavetobetestedbyusingt-test,soastoseewhether eachofthevariables(exogenousorindependent)thatyouhaveincludeinthefunctionhasan effectonthedependentvariable(lefthandside). 3. Fort-test,thefollowingstepsshouldbefollowed: (i)H0:β0 =0 (Nullhypothesis) HA:β00 (Alternatehypothesis) Iftcalculated >ttablevalue(n-k)degreesoffreedom
where:
n=#ofobservations k=#ofparameters,i.e.#ofrighthandsidevariablesplustheconstant thenH0 isrejected,i.e.thevariableyouaretestinghasaneffectonthedependentvariable. 4. DoF-test,byfollowingthesesteps: (i)H0:β0 =β1 =β2 =0 (Nullhypothesis) HA:Atleastoneβisnotequaltozero (Alternatehypothesis) (ii)IfFcalculated>Ftablevalue ThenH0 isrejected,i.e.alltheright-hand-sidevariablesareimportant