You are required to choose a topic for your project. The purpose of this project is to use multiple regression analysis to build an explanatory equation for the dependent variable of your interest. The sample of your data must include at least 30 observations (it would be preferable to analyse a larger sample). Write a report, containing answers to the following questions:
(1) Comment on the expected relationships between your dependent and explanatory variables.
(2) Perform and interpret a multiple regression.
(3) Apply the methodology of hypothesis testing to investigate if your empirical findings are consistent with the theoretical expectations. Comment on your findings.
(4) Apply relevant diagnostic tests to check for model specification error, multicollinearity, heteroscedasticity and/or autocorrelation. Comment on what you could do differently to improve the performance of the multiple regressions. If possible, take appropriate course of action to address the issue.
You should submit an e-copy of your essay via blackboard. In addition, you must email your data file (Excel format) to the module leader before the submission deadline.
I. Introduction: states the objectives of the project
II. Literature review:
A concise review of relevant previous literature and research. Based on this, a set of hypotheses should be set out at the end the literature review section.
A description of the data that includes data sources, variable measurements, descriptive statistics (including correlation matrix) and any irregularities with the data
IV. Model specification:
A presentation of model specification(s). If you estimate more than one specification, be sure to evaluate and explain which one is the preferred specification.
A careful analysis of the regression results that includes
a. a discussion of any econometric problems including these identified by diagnostic tests you applied
b. a discussion of hypotheses test results
c. a discussion of estimated coefficients
A short summary of your findings and a brief discussion of the implication of
your findings and/or suggestions for future research.
VII. References: Harvard Referencing Style
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