Applied Econometrics Assignment 1
(Analysis was done using R).
- Run an econometric regression model on your dataset giving proper justification for selection
of the variables. Interpret the coefficients of your variable appropriately.
- Prepare Graph Matrix for your dataset. Comment on the association between dependent
variable & independent variables of your dataset.
- Plot the predict Y and discuss the accuracy of your model.
- For regression model fit in Question 1, run the tests for checking following OLS assumptions
and interpret your results.
a. Heteroscedasticity
b. Multicollinearity
c. Normality of the error term
d. Omitted-Variable Bias - Based on results of Question 4, use the remedies to address the issues identified and alter your
model suitably.
- For your model, run two joint tests (F-test) giving justification for the same. Interpret the results.