Part III: Quiz (Exercise Question 15.6, cattle.wf e U.S. Secretary of Agricultur
ID: 3375882 • Letter: P
Question
Part III: Quiz (Exercise Question 15.6, cattle.wf e U.S. Secretary of Agriculture asks a staff economist to provide a basis for determining cattle inventories in thel Midwest) ISouthwest) andlWest! Let 1,2,3 denote the three regions. The economist hypothesizes that in each region cattle numbers at the end of the year (Cu) depend on average price during the year (Pi) rainfall during the year (R), and cattle numbers at the end of the previous year C). Because growing conditions are quite different in the three regions, three separate equations are specified, one for each region: The above equations are estimated in Eviews using the following specifications: S System: CATTLE Workfile: CATTLE:Cattlel a X ewlProclObject?PrintlNamelFreeze! nsertTxt1Estimate!Speel tatslResids 1-cl1)+c(2),p1+C(3)*t1+C(4)*C1 (-1) C2 c(5)+c(6) p2+c(7) r1+c(8) c1-1) C3-c(9)+c(10) p3+C(11) 1+C(12) c1(-1) The SUR estimation and testing results are as below: SJ System: CATTLE Workfile: CATTLE:Cattlel View Proc Object Print Name Freeze InsertTxt Estimate Spec Stats Resids System: CATTLE Estimation Method: Seemingly Unrelated Regression Date: 05/17/18 Time: 03:25 Sample: 2 27 Included observations: 26 Total system (balanced) observations 78 Linear estimation after one-step weighting matrix Coefficient Std. Error t-Statistic Prob 12.07296 34.10000 0.354046 0.7244 1.059455 0.290021 3.653028 0.0005 1.476706 0.567636 2.601499 0.0114 0.664458 0.124908 5.319568 0.0000 35.79187 15.11243 2.368373 0.0208 0.944717 0.115828 8.156186 0.0000 1.502052 0.252508 5.948539 0.0000 0.267520 0.055441 4.825284 0.0000 -7.910216 32.61276 -0.242550 0.8091 1.391150 0.274240 5.072744 0.0000 1763094 0.534515 3.298494 0.0016 0.869980 0.118338 7.351670 0.0000 C(2) C(3) C(4 C(6) C(7) C(8 C(10) C(11) C(12) Determinant residual covariance 131964.6Explanation / Answer
Q1 and Q2 are correct
Q3)
as p > .05 we fsil to reject null at a=.05( 95% confidence)
Q4)
you need to give the level at which test is performed by default it is 95% confidence or a = .05