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the relationship between Disposable income and Consumption in the United Kingdom

 
Questions to Answer
1) Are the variables cross-sectional data or time-series data?
2) Is the sample size sufficient to yield a good estimate?
3) State you’re a priorihypothesis about the sign of the slope.
4) Based on the least square method, what is the value and the meaning of b1 and b2?
5) Carry out two-tailed t-test for zero slope.
6) Based on the coefficient of determination, how would access the fit?
7) Calculate the forecast error of the linear and non-linear models.
8) Evaluate the empirical results of the linear and non-linear models.

 

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