TAILIEUCHUNG - Lecture Undergraduate econometrics, 2nd edition - Chapter 7: The multiple regression model

In this chapter, students will be able to understand: Model specification and the data, estimating the parameters of the multiple regression model, sampling properties of the least squares estimator, interval estimation, hypothesis testing for a single coefficient, measuring goodness of fit. | Chapter 7 The Multiple Regression Model When we turn an economic model with more than one explanatory variable into its corresponding statistical model we refer to it as a multiple regression model. Most of the results we developed for the simple regression model in Chapters 3-6 can be extended naturally to this general case. There are slight changes in the interpretation of the p parameters the degrees of freedom for the -distribution will change and we will need to modify the assumption concerning the characteristics of the explanatory x variables. Slide Undergraduate Econometrics 2nd Edition-Chapter 7 Model Specification and the Data When we turn an economic model with more than one explanatory variable into its corresponding econometric model we refer to it as a multiple regression model. Most of the results we developed for the simple regression model in Chapter 3-6 can be extended naturally to this general case. There are slight changes in the interpretation of the p parameters the degrees of freedom for the t-distribution will change and we will need to modify the assumption concerning the characteristics of the explanatory x variables. As an example for introducing and analyzing the multiple regression model consider a model used to explain total revenue for a fast-food hamburger chain in the San Francisco Bay area. We begin with an outline of this model and the questions that we hope it will answer. Slide Undergraduate Econometrics 2nd Edition-Chapter 7 The Economic Model Each week the management of a Bay Area Rapid Food hamburger chain must decide how much money should be spent on advertising their products and what specials lower prices should be introduced for that week. How does total revenue change as the level of advertising expenditure changes Does an increase in advertising expenditure lead to an increase in total revenue If so is the increase in total revenue sufficient to justify the increased advertising expenditure Management

• Quản trị kinh doanh
• Undergraduate econometrics
• Lecture Undergraduate econometrics
• Kinh tế lượng
• Multiple regression model
• Model specification
• The least squares estimator
• Econometric model
• Experimental data
• Statistical inference
• Random variables
• Probability concepts
• Probability density
• Linear regression model
• Economic model
• The least squares estimators
• Least squares estimators
• Simple regression model
• Interval estimation
• Hypothesis testing
• Simple linear regression model
• Coefficient of determination
• Regression analysis
• Hypothesis tests
• Collinear economic variables
• Intercept dummy variables
• Slope dummy variables
• Dummy variables
• Nonlinear models
• Interaction variables
• Logistic growth curve
• Nature of heteroskedasticity
• Proportional heteroskedasticity
• Distributed lag models
• Finite distributed lag models
• Geometric lag
• Time series data
• Stationary time series
• Spurious regressions