interpretation of regression output

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maaariiianne
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Joined: Tue Aug 03, 2010 1:10 am

interpretation of regression output

Postby maaariiianne » Tue Sep 07, 2010 10:15 am

Dear all,

I have read a lot today on the interpretation of the regression output but it is still not clear to me. I used a tobit regression model:

ED=b0 + b1ex + b2exw+ b3edu + b4nr+ b5val + b6si + b7dy + u
where
ED= monthly electricity demand per household in kWh
Ex= expenditures on durables
Ex= expenditures on water
Edu= number of years of education of household head
Nr= number of cattle
Val= value of the house in Kenyan Shillings
Si= size of the land in acres
Dy= dummy variables to control for the effect of district differences on electricity consumption

I tested a lot of variables and decided to take these independent variables to explain best the electricity demand as for this combination of variable the AIC was the lowest.

Could you please help me with the interpretation of the following table. I would be very grateful for any kind of advice.

Variable Coefficient Std. Error z-Statistic Prob.

C -381.9608 17.55332 -21.76003 0.0000
EX 0.000105 1.50E-05 6.974657 0.0000
EXW 0.049995 0.008489 5.889536 0.0000
EDU 17.48705 1.147801 15.23527 0.0000
NR 0.853652 1.958417 0.435889 0.6629
VAL 0.010885 0.000459 23.71315 0.0000
SI 0.103004 0.149100 0.690841 0.4897
D401 55.55135 30.47271 1.822987 0.0683
D101 118.9957 19.07780 6.237391 0.0000
D201 115.4448 19.08484 6.049035 0.0000
D202 44.15025 29.79620 1.481741 0.1384
D203 -96.93546 69.97745 -1.385239 0.1660
D204 43.59973 62.13364 0.701709 0.4829
D205 98.21051 23.60020 4.161427 0.0000
D206 -251.2132 70.87721 -3.544344 0.0004

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