Regression Project

1. Find an econometric problem. Specify the models or relationships to be studied.
2. Define your hypothesis and expected problems.
3. Collect the related data. Good place to find the data will be:

1. The Internet. For example: What is the market price for homes in my neighborhood/town? Data on prices and characteristics of comparable houses or apartments at a point in time may be available from the Multiple Listing Service. Statistical tables from FRED or the Economic Report of the President or the Statistical Abstract of the United States are fine. But do not use prepared datasets, such as problems and data from other classes.
2. Survey. What determines rent paid by UIC students? Survey friends or rents, apartment information such as in the Ann Arbor rents example.
3. Library. The UN, private and government business and economics publications are full of data. Compare money-price level relationships for different countries with the International Financial Statistics.
4. Newspapers. Daily stock prices, weekly money supply, and other data are reported. Do movements in overall stock prices explain most of the movements in XYZ stock over a month? Does CAPM explain?

4. You are responsible to provide the data source and details about the descriptive statistics (Mean, Median, Variance, Minimum, maximum, and correlation coefficients), and explanation.

5. Based on your specification, run your regression. Carefully explain your results including signs of coefficients and their magnitude, goodness of fit, $t$, and $F$ statistics, and plots. Check the classical assumption. Is there any violation of the assumption? Apply appropriate tests that will be introduced in class, and try to improve your model.

6. Conclude your project with your findings, any problem of your regression model, and any further suggestions.

Price: $20.28

Solution: The downloadable solution consists of 12 pages, 828 words and 14 charts.
Deliverable: Word Document