Please provide statistical results by using STATA and interpretations.
1. Data
2. Hypothesis Testing
3. Simple Linear Regression with Ordinary Least Squares (OLS)
4. Multiple Linear Regression
5. Functional Form 6. Dummy Variables
7. General Linear F-Tests
8. Multicollinearity
9. Heteroskedasticity and Autocorrelation Additionally, for the STATA results, please name the explanatory variables properly (do not use X1, X2, ...) It will tell you if you click on each one and look at the white box next to the formula box in the excel spreadsheet (Single Matrix).
Conduct the regression/econometric analysis.)
Once the general model has been developed and the relevant data collected, the next step is to apply the econometric techniques that you have learned in class to estimate the model. You are required to use STATA for estimation unless there is reason to use another statistical package (in which case you will need to talk with the instructor beforehand to get permission). Estimation results for multiple variations of your general model.
Discussion of Results
a. Explicit statement of the model(s)/equation(s) being estimated.
b. Statement of whether the results refute or support the hypotheses.
c. Statement of whether the results are statistically significant.
d. Interpretation of the magnitude of the coefficients, and calculation of economic values such as elasticities, etc., if appropriate.
e. Comment on functional form. Have you considered functional forms other than the linear form?
f. Other?
Demand for Automobiles: Foreign vs Domestic
Going through the analysis, we observe that the income does not influence the purchase of a vehicle. A consumer will be more likely to purchase a domestic vehicle if it has a higher safety rating holding all else constant. The more reliable a domestic vehicle is the less likely a consumer will purchase a foreign automobile holding all else constant. The better quality a domestic vehicle is the less likely a consumer will purchase a foreign automobile holding all else constant.