3300 Econometics HW Set 1
| DATE | Cons. | Disp.Icome |
| 2015-01-01 | $11,788.36 | $13,226.57 |
| 2015-04-01 | $11,887.54 | $13,327.81 |
| 2015-07-01 | $11,971.95 | $13,440.36 |
| 2015-10-01 | $12,039.65 | $13,471.39 |
| 2016-01-01 | $12,111.78 | $13,562.27 |
| 2016-04-01 | $12,214.10 | $13,541.45 |
| 2016-07-01 | $12,294.30 | $13,592.92 |
| 2016-10-01 | $12,372.73 | $13,685.36 |
| 2017-01-01 | $12,427.65 | $13,835.34 |
| 2017-04-01 | $12,515.86 | $13,909.77 |
| 2017-07-01 | $12,584.91 | $13,986.19 |
| 2017-10-01 | $12,706.37 | $14,065.92 |
| 2018-01-01 | $12,722.84 | $14,219.83 |
| 2018-04-01 | $12,842.02 | $14,306.61 |
| 2018-07-01 | $12,968.54 | $14,393.59 |
The data given in the data file in theConsumption file represent the real private consumption of the USAfrom Quarter I 2005 to III Quarter 2018.
Similarly, the Real Disposable Incomeis provided over the same time span.
Set up a regression that relates the dependent variable(Y) tothe independent variable(X).
Derive Manually the coefficients of theregression. (Intercept(b1) and slope(b2)).
State the Regression equation.
Interpret the meaning of the slopes b2, in this problem.
Derive the Correlation Coefficient R^2
Derive the Standard Error of the regression
Derive the standard error of the Intercept (b1) and the standarderror of the Slope (b2).
Derive the t values of the coefficients
Construct a 95% confidence interval for b1 and b2
Use a two tail ?=5% level of significance, to test theconfidence intervals for the slope(b2).
(Hint: All the formulas required toanswer the questions are cited in chapters 2 and 3 of thetextbooks. Use also the notes from the lectures).
