Regression- Statistics

1 Journal Article  You should save your file as “ Lastname_Firstname_ ECO578_ Summer I20 17”  You can submit your work either as a PDF or WORD File (Make sure Only ONE file is submitted)  You can attach your Excel file as your appendix (only ONE Excel file is allowed) *Only one Word or PDF file and one Excel file should be submitted in the drop box Due: Monday , July 3 , 201 7 by 11:59 a.m (Central Time) Profits Use the given Sample data for profits made by super markets and follow the instructions below:  Instructions 1. Run a regression using the given data. (With Profit as the dependent variable and Store size as the independent variable) 2. Compare the resu lts of question (1) with another regression equation obtained by regressing the Profit on the variables : Food Sales and Non food sales . 3. Which of the models do you prefer? Why? 4. Interpre t your results for (1) and (2). 5. In writing your paper, you should start by indicating the objecti ves of the study and value addition there of from the business context. Also, discuss the methodology and conclusions. **Range: 5 pages + Excel printout results** **You can use EXCEL or any other software** ** You need to include your printout in your submissions**  Paper Format The layout and format of the paper should include the following sections: Title page, Abstract, Introduction, Method ology , Emp irical -Results , and Discussion , Conclusion s. a) Abstract: is a ver y concise summary of the paper. b) Introduction: Tells the reader about the topic. Specifically, it should start with ‘the purpose of this paper is to examine…. ’ ‘What the issue is ’, ‘what is known about it ’, and the specific focus? Put 2 a bus iness context to it - write the value added by your work or what businesses can gain from the knowledge of the determinants of incomes. c) Method ology : You should be able to explain what method you are using for your work. For example, you can start with telling the reader that the ‘ordinary least squares method (OLS) was used to obtain estimated coefficients... ’ (Then write more). You should be able to write the equation from the Excel result. We expect to see you… 1. Using the excel result to generate the equation. 2. Find the standard error of each variabl e. 3. Find the t -stat of each variable. 4. Find the p -value of each variable. 5. Find the F -value of the equations EXAMPLE: Ŷ = 1.24 + 1.71 X1 - 0.83 X2 - 2.12 X3 (6.79) (1.43) (0.22) (0.85) T-stat [0.18] [1.20] [3.78] [2.48] P-value 0.857 0.247 0.002 0.025 d) Empirical -Result s: Should tell what was found from the computed data. Using Chapter 10 and 11 for helping you interpret your result. For instance, you should interpret the Coefficient of Determination ( ), F-test, t-test, p -value and etc. In addition, your result should use the hypothesis equation. e) Discussion : Describes what your findings mean in the light of the information presented in the introduction. It is the interpretive segment of the paper and loops back to answer the issues raised in the introduction. Remember to discuss questions 2 and 3. f)Conclusion : What conclusion would you draw ba sed on your study. **Remember that the results section should include hypothesis testing for a t -test about each slope coefficient and an F -test for the overall regression model. EXAMPLE: For the t -test, it is written like this: Note:  You have to decide whether to use one -tail or two -tail test  You need to follow chapter 9 materials and declare your alternative hypothesis in each case very well F-test: Note: mention what α is u sed in your hypothesis testing. 3  Data  Sample Data for Profits of Supermarkets How to Submit Your Journal Due: Monday , July 3, 201 7 by 11:59 a.m. (Central Time)  You should save your file as “Lastname_Firstname_ ECO578_ Summer I201 7”  You can submit your work either PDF or WORD file (Make sure Only ONE file is submitted)  You can attach your Excel file as your appendix ( only ONE Excel file is allowed) *Only one Word or PDF file and one Excel file should be submitted in the drop box  Submit your file(s), Under “Journal Article ” in Dropbox Supermarket Number Food Sales (tens of thousands of dollars) X 1 Nonfood Sales (tens of thousands of dollars) X 2 Store Size (thousands of Square feet) X 3 Profit (thousands of dollars) Y X1 X2 X3 Y 1 305 35 35 20 2 130 98 22 15 3 189 83 27 17 4 175 76 16 9 5 101 93 28 16 6 269 77 46 27 7 421 44 56 35 8 195 57 12 7 9 282 31 40 22 10 203 92 32 23