Essay BEC-BEF341 – Income and The Log of Price of Gasoline – Economics Assignment Help

Assignment Task

Question 1 The model below is a regression of logarithm of expenditure on gasoline on log of personal disposable income and the log of price of gasoline.

a. The following test is conducted to verify which assumption has been violated. Study the output below (model6) and identify the name of the test, state the null hypothesis and carry out the test.

b. The following test is conducted to verify which assumption has been violated. Study the output below (model7) and identify the name test, state the null hypothesis and carry out the test.

Question 2 We are estimating the relationship between being divorced and congnitive ability, level of schooling, age, earnings, weight, faith(christrianty), ethnicity and gender. The variables are DIVORCED coded 1 and 0 not divorced, S, ASVBC, AGE, EARNINGS, WEIGHT, FEMALE(1 and 0 male), FAITHC(Christian 1 and 0 other), ETHBLACK(1 and 0 other) and ETHWHITE(1 and 0 other). The DIVORCED variable is binary response. We run a logit model with the following probability density function z e F x − + = 1 1 ( ) and FEMALE ETHWHITE

Question 3 i. The data below indicate the relationship between the cost for an institution and the number of enrolments with dummy variables for the type of school. The variables such as RES is residential school coded 1 and 0 for non-residential school, TECH is coded 1 for technical school and 0 for other school, WORKER is 1 for skilled workers and 0 for other, VOC is 1 for vocational schools and o for others. GEN is coded 1 for general schools and 0 others

ii. The second output data below indicate the relationship between the cost for an institution and the number of enrolments with dummy variables for the type of school which are either occupational school (1)or regular school (0)and residential (1)or non-residential schools (0). The variable NOCC is a product of enrolment and OCC