Estimating 3 Models in eViews: What to put in the equation box?

For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.

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WinstonWithAY
Posts: 8
Joined: Fri May 01, 2020 8:41 pm

Estimating 3 Models in eViews: What to put in the equation box?

Postby WinstonWithAY » Fri May 01, 2020 8:56 pm

Hi
I have attached a question and need help. Could someone tell me what I'm supposed to type into the equation box for these three models I need to estimate. I'm not sure what I'm supposed to do here. Ive also attached the variables I have in my workfile.
Any help is appreciated
Regards
Winston
Attachments
varwork.PNG
varwork.PNG (2.88 KiB) Viewed 7037 times
q11est.PNG
q11est.PNG (35.71 KiB) Viewed 7039 times

startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby startz » Sat May 02, 2020 6:46 am

Nothing wrong with telling us what you've done and where you're stuck, but this isn't the place to ask people to do your homework for you.

WinstonWithAY
Posts: 8
Joined: Fri May 01, 2020 8:41 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby WinstonWithAY » Sun May 03, 2020 1:34 am

I think I already figured it out:
Model 1: spread c ar(1) ma (1)
Model 2: spread c ar(1) ar(2)
Model 3: spread c ar(1) ar(2) ar(3)
I figured out that the best model according to both criteria is the ARMA(1,1) model or Model 1.

I'm not sure what it means by "comment on the significance of the coefficients." Could you please help me out with that?
Thanks

startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby startz » Sun May 03, 2020 6:45 am

Think of doing a hypothesis test on whether the coefficients equal zero. Would you reject at the 10% level? The 5% level?

WinstonWithAY
Posts: 8
Joined: Fri May 01, 2020 8:41 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby WinstonWithAY » Sun May 03, 2020 6:27 pm

So would you just do an F-test? What would you put in the equation box for that?

startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby startz » Sun May 03, 2020 7:37 pm

Probably t-tests, although there is nothing wrong with F-tests.

You might want to spend an evening with the first few chapters of https://www.eviews.com/illustrated/illustrated.html

WinstonWithAY
Posts: 8
Joined: Fri May 01, 2020 8:41 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby WinstonWithAY » Mon May 04, 2020 5:58 pm

So I just did a Wald Test and set c(2)=0, c(3)=0 etc. Is that the right thing to do? Then you reject the null hypothesis if the p-value is between 0-5%?

startz
Non-normality and collinearity are NOT problems!
Posts: 3775
Joined: Wed Sep 17, 2008 2:25 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby startz » Mon May 04, 2020 6:20 pm

Yes, that's the way to test the hypothesis that both coefficients equal zero.

WinstonWithAY
Posts: 8
Joined: Fri May 01, 2020 8:41 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby WinstonWithAY » Mon May 04, 2020 10:29 pm

And if you reject the null hypothesis, then you conclude that the coefficients are statistically significant at the 5% level right?

WinstonWithAY
Posts: 8
Joined: Fri May 01, 2020 8:41 pm

Re: Estimating 3 Models in eViews: What to put in the equation box?

Postby WinstonWithAY » Tue May 05, 2020 4:08 am

I also needed help with the following questions.
For Q5, I concluded that the coefficient of Beta1 was not significant at the 5% level. I'm not sure what it means by "How do you interpret this result?" What is it asking for there and can you help?
Also for Q7, i concluded that there was heteroscedasticity for both regressions. I'm not sure what the final part of the question is asking in regards to how any conclusions would change. Could you help me out with that?

Thanks a lot
Attachments
q7ass.PNG
q7ass.PNG (17.87 KiB) Viewed 6841 times
q5ass.PNG
q5ass.PNG (12.22 KiB) Viewed 6841 times


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