## Monday, April 29, 2019

### Applied statistics Essay Example | Topics and Well Written Essays - 1000 words

Applied statistics - Essay ExampleWe carry econometric techniques over the period 1970 to 2002, involving 33 observations. In our notation, LGDP is natural logarithm (ln) of real Gross domestic help Product, LC is the log of consumption, LDI is the log of domestic investment, LX is the log of exports, LM is the log of imports, LG is the log of government intake and LFDI is the log of FDI. According to Gujarati (2004 176-177), this model is called as the regular press stud model that assumes a constant snap fastener relationship between the independent uncertains and the dependent variable, logarithm of gross domestic product. The coefficients associated with the independent variables measure the elasticity of the dependent variable with respect to independent variables, or the percentage increase in the dependent variable (Gujarati 2004 176). The methodology of this work is informed by the works of Woolridge 20042-6 as well as Gujarati 200410-12.We begin with sparing growth m odel 1 in which the national income function Y=C+I+G+(X-M). In model 1, however, I = DI + FDI where DI = domestic investment and FDI = foreign direct investment. For model 1 and for the ataraxis of model as well, we assume the existence of constant C in the regression. Otherwise, interpretation of the regression pass on be different without a slope (Gujarati 2004 167-169). We need not worry on the interpretation of the constant in a regression because it need not always have an interpretation (Gujarati 2004 167-169).Table 1 suggests that all regressor variables of the regression, except for LFDI and LG are significant at the 0.01 level. This means that for all coefficients, except LFDI and LG, we can wipe out the applicable null hypothesis that i =0 to accept alternative hypotheses that are consistent with economical theory. Based on the theory of the national income function in economics, we expect the signs to be as follows 20, 30, 40, 50, 60, and 7