AMS2320 Business Regression Analysis Semester 2, 2024-2025 ASSIGNMENT 2 There are two questions. Please answer all questions and show your steps clearly. C
AMS2320 Business Regression Analysis Semester 2, 2024-2025 ASSIGNMENT 2 There are two questions. Please answer all questions and show your steps clearly. Correct your numerical answers to 4 decimal places. You may use SAS and/or R to do the calculations. Please include the program codes in your answer script. Combine all materials in a single pdf file with file name: AMS2320 Assignment 2 – [Student ID].pdf (e.g. AMS2320 Assignment 2 – s123456.pdf) and submit it via Moodle. Question 1. Is there structural break in the price level data? It is suggested that there is a structural break in the price level. The period before 2007 is one regime. The period 2007 and after is another. Consider the model CPI = β0+ β1(Year) + β2D + β3(D)(Year) . where D is a dummy variable: 0 for before the break and 1 for after. We want to test if the so-called structural break is significant. We have the following computer output: Full model d .f . SS MS F Sig . Regression 3 3047 .5 1015 .833333 4353 .571429 2 .11752E-10 Residual 6 1 .4 0 .233333333 Total 9 3048 .9 Reduced model d .f . SS MS F Sig . Regression 1 3012 .148485 3012 .148485 655 .6787599 5 .80084E-09 Residual 8 … Read more