Econometrics assignment using Eviews

Programming
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Unassigned
schedule
13 Hours
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$1.00-$50.00

okalhuss
After adding PNTO and PCPI in explaining INCMAR in HP4-5-1, you now get the bright idea of adding percentage changes in real GDP (PRGDP) as a third independent variable. You believe that higher PRGDP will help the incumbent candidate and add to the explanatory power of the equation.

Q1. Show the hypothesized theoretical relationships between INCMAR and all three independent
variables.
Q2. Show the multiple linear regression results for testing the above relationships.
Q3. In order to reduce multicollinearity, rerun the equation after dropping all the independent variables
in the above equation that are the wrong sign or whose measured t statistics (absolute values) are
less than 2.
Q4. Why do you think the variable you dropped in Q3 was the wrong sign? and was insignificant as well?
Do you have any statistical evidence to support you thinking?
Q5. Save your file as HP5-1-1 in EViews and Excel.