AP/ECON 3210A Assignment 2

Note:

•   You are free to use any programming languages listed in the course outline, but I will focus R program language for Assignment II.

•   Like the assignment 1, you are free to form a group of no more than 5 individuals.

DUE DATE: Friday December 2, 2022 11:59pm, eClass Assignment 2 Submission Site            No late submission, no multiple submission allowed.  If you do the assignment as a team, then choose a representative person, and submit the assignment under his/her name.

STEP 1:  DATA COLLECTION

•   The method of obtaining data is the same as the Assignment I.

•   In addition to the data of two years, such as 2015 and 2016, from your assignment 1, you have to collect the data of at least one more year, such as the year of 2017, for your assignment 2.

•   So your data for Assignment 2 must be the data of at least 3 years, such as 2017, 2016 and 2015 with the 108 observations each.

•   For the details of the data collection, please see the assignment 1 again if needed.

•   If you were a member of a group in Assignment 1, and now you are not in the same group, then in principle, the data from the assignment 1 is owned by the group, not you who leaves the        group. Or based on negations and agreements among members, the owner of the data can be     decided.

STEP 2:  ANALYSIS

•   You have to estimate two multiple regression models specified as below.

•   Note that the variable y, dependent variable, must be the data of the latest year.

Three Analyses:

1)  Estimate a multiple regression model, y = f(X1, X2, … . . , ), and justify the scientific significance of the variable(s) and the estimated model with t test, F test, R-squared, adjusted R squared, etc. For   each test, you must clearly identify the null and alternative hypotheses, the statistic value, and the   p-value and conclusion.

2)  Estimate one of the following forms of multiple regression models:

log y = f(log X1 ,  log X2   … . . , ), log y = f(X1,  X2   … . . , ), y = f(log X1 ,  log X2   … . . , ),

And justify the scientific significance of the variable(s) and the estimated model with t test, F test, R-squared, adjusted R squared, etc. For each test, you must clearly identify the null and alternative hypotheses, the statistic value, and the p-value and conclusion.

3)  Compare the models estimated in # (1) and # (2).  Which of the two models is more scientifically recommended model? Why?

STEP 3:  REPORT

1)  Create a complete report for management (your instructor) on your findings.  One word file only (multiple files, pdf file, word perfect file, or Apple version file is/are NOT acceptable).

2)  One submission per group (A zero mark will be given for multiple submissions)

3)  As a minimum, your report must include the following (brevity is sweet):

•    A title page with

•    Title

•    the names and student numbers of all your group members

•    course code (AP ECON 3210A)

•    submission date (no later than XXXXX  2021).

•    For each question, a page with a brief introduction and a write up of your chosen hypothesis test including assumptions and a conclusion. A brief description of why you selected a specific test  and rejected others must be included (e.g., describe what type of test must be run; enter the data into SAS, run the analyses, make your technical & managerial decisions, and write your report.) Extraneous information (i.e. padding or decoration) is neither desired nor rewarded (except perhaps negatively in extreme cases).