question:analyze the data and give the conclusion and suggestion. 2.Hong Kong (1
ID: 1107912 • Letter: Q
Question
question:analyze the data and give the conclusion and suggestion.
2.Hong Kong
(1) Augmented Dickey Fuller (ADF) Unit Root Test
Table 3 Results of ADF Unit Root Test in Hong Kong City
Variable
t-Stat
5% level
Prob
Result
Variable
t-Stat
5% level
Prob
Result
GDP
0.2326
-3.0300
0.9673
Non-stationary
D(GDP)
-3.6091
-3.0404
0.0165
stationary
FAF
-1.5402
-3.0300
0.4923
Non-stationary
D(FAF)
-3.4088
-3.0404
0.0246
stationary
EMP
-0.1332
-3.0300
0.9321
Non-stationary
D(EMP)
-3.8261
-3.0989
0.0138
stationary
FDI
-0.7288
-3.0300
0.8162
Non-stationary
D(FDI)
-4.2177
-3.0404
0.0048
stationary
Note: Prob <0.05, significance.
(2) Ordinary Least Square (OLS)
Table 4 Results of OLS Regression in Hong Kong
Variable
Coefficient
St. Error
t-Statistic
Prob.
FAF
0.2878
0.0837
3.4366
0.0034
EMP
1.0260
0.5404
1.3899
0.0758
FDI
-0.0148
0.0542
-0.1935
0.8490
C
2.9744
2.4886
1.1952
0.2494
R²
0.6132
---
---
---
Adj.-R²
0.5407
---
---
---
F-stat
8.4547
---
---
---
Prob. (F-stat)
0.0136
---
---
---
Note: Prob <0.1, significance.
Variable
t-Stat
5% level
Prob
Result
Variable
t-Stat
5% level
Prob
Result
GDP
0.2326
-3.0300
0.9673
Non-stationary
D(GDP)
-3.6091
-3.0404
0.0165
stationary
FAF
-1.5402
-3.0300
0.4923
Non-stationary
D(FAF)
-3.4088
-3.0404
0.0246
stationary
EMP
-0.1332
-3.0300
0.9321
Non-stationary
D(EMP)
-3.8261
-3.0989
0.0138
stationary
FDI
-0.7288
-3.0300
0.8162
Non-stationary
D(FDI)
-4.2177
-3.0404
0.0048
stationary
Explanation / Answer
In the first problem
we have taken the difference method then all coefficientsare significant.If weare not taken the difference method then all coefficients are insignificant,
null hypothesis: H0= stationary, there is no relationship between Dependent and his lagged variable.
Alternative Hypothesis: not stationary, There is relationship
at 5% level of significance
We all the calculated P value is less than P- Tabulated that is 0.05
2-
in the second problem in ols method only the coefficient of FAF and EMP are insignificant and coefficient of FDI and C are significant at 10% levelof significance.
Null hypothesis:H0= Coefficient of independent variable=0
Ha: Not zero
P-calculated<0.10 then reject the null hypothesis.
from F-test ,The overall model is significant because P-value of F is greater than 0.10.
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