s enterprise survey one of the reseachers of university wantedto see the relationship between cultural fractionalizaiotn anddemand for informal finance in Malausian firms. He uses thefollowing equation to estimate.
Equation (1)
- 1 Using The Data Provided By The World Bank S Enterprise Survey One Of The Reseachers Of University Wanted To See The R 1 (5.57 KiB) Viewed 39 times
y = demand forin formal finance
X1 = cultural fractionalizaiton
X2 - size of the firm
X3 - firmage
X4 -= three years of growth in the frim' srevenues
Equation (2)
- 1 Using The Data Provided By The World Bank S Enterprise Survey One Of The Reseachers Of University Wanted To See The R 2 (12.99 KiB) Viewed 39 times
1. state the assumption that researcher has imposed to estimateequation 1 to get unbiased estimators
2. find the independent variables from equation 2 which areaffecting the demand for informal finance significantly at 1%
3. explain the reasons why variables of 2 quesiton affetcs thedemand for informal finance signifacntly and calculate adjusted r2.What adjusted R2 explains?
Hand-written not excel. Thanks
Y=β0+β1X1+β2X2+β3X3+β4X4+ε
The estimated equation is as follows Y^=0.982+2.783X1−0.148X2−0.010X3−1.973X4 equation (2) Standard lirror (0.521)(0.905)(0.804)(0.341)(0.681) R2=0.0711; Number of observations =70