Print out your regression and answer each of the following questions for the
regression run.
- Evaluate this result with respect to its economic meaning,
overall fit, and the signs and significance of the individual
coefficients.
- What econometric problems does this regression have?
Even though the signs are correct, you may want to consult the
theory. Omitted
variables should always be tackled before serial correlation
- Which of the following statements comes closest to your
recommendation for further action to be taken in the estimation
of this equation?
- No specification changes are advisable (go
to the next section).
- No variable changes are advisable, but I am
concerned about heteroskedasticity or serial
correlation (go to the next section).
- I would like to add PRIBF to the equation
(go to question 5).
- I would like to add seasonal dummies to the
equation (go to question
2).
- I would like to change to LYDUSP from YDUSP
(go to question 9).