National open university of nigeria introduction to econometrics II eco 356

Download 1.64 Mb.

View original pdf

Page	95/178
Date	04.08.2021
Size	1.64 Mb.
	#57143

1 ... 91 92 93 94 95 96 97 98 ... 178

Introduction to Econometrics ECO 356 Course Guide and Course Material
Introduction to Econometrics ECO 356 Course Guide and Course Material

2.3.3.3 t Tests and Confidence Intervals

INTRODUCTION TO ECONOMETRICS II

ECO 306

NOUN
79
(i)
There must be enough data to fit the regression line. That is, there must beat least as many (independent) observations as there are parameters to be estimated.
(ii)
There must not bean exact linear relationship among the explanatory variables.

2.3.3.3 t Tests and Confidence Intervals
The t tests on the regression coefficients are performed in the same way as for simple regression analysis. Particular attention should, however,be taken when looking up the critical level of t at any given significance level. It depends on the number of degrees of freedom (n – k); the number of observations n minus the number of parameters estimated k. The confidence intervals are also obtained in the same manner as in simple regression analysis and equally based on the number of degrees of freedom (n – k).

Download 1.64 Mb.

Share with your friends:

1 ... 91 92 93 94 95 96 97 98 ... 178