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a. Using a statistical package of your choice, confirm the regression results given in Eq. (2.24) and Eq. (2.25).
b. For both regressions, get the estimated values of Y (i.e., Ŷi) and compare them with the actual Y values in the sample. Also obtain the residual values, ei. From this can you tell which is a better model, Eq. (2.24) or Eq. (2.25)?
For Information: Refer to Example 2.3, for which the data are as shown in Table 2-6. |
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