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

Posted: Fri May 01, 2020 8:56 pm
by WinstonWithAY
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

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

Posted: Sat May 02, 2020 6:46 am
by startz
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.

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

Posted: Sun May 03, 2020 1:34 am
by WinstonWithAY
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

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

Posted: Sun May 03, 2020 6:45 am
by startz
Think of doing a hypothesis test on whether the coefficients equal zero. Would you reject at the 10% level? The 5% level?

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

Posted: Sun May 03, 2020 6:27 pm
by WinstonWithAY
So would you just do an F-test? What would you put in the equation box for that?

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

Posted: Sun May 03, 2020 7:37 pm
by startz
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

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

Posted: Mon May 04, 2020 5:58 pm
by WinstonWithAY
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%?

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

Posted: Mon May 04, 2020 6:20 pm
by startz
Yes, that's the way to test the hypothesis that both coefficients equal zero.

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

Posted: Mon May 04, 2020 10:29 pm
by WinstonWithAY
And if you reject the null hypothesis, then you conclude that the coefficients are statistically significant at the 5% level right?

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

Posted: Tue May 05, 2020 4:08 am
by WinstonWithAY
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