代写 MAE256 T2 2016 – Assignment

MAE256 T2 2016 – Assignment Details

MAE256 T2 2016 – Assignment Details

Due Date : 16 September, Friday

Word Limit : 1500 words excluding appendices, figures and tables.

Weight : 20% of overall final grade.

General Details

(1) This is an INDIVIDUAL Assignment. We strongly discourage plagiarism, as it will

be penalized as much as possible. However, it is not collusion if you discuss the

questions with other students, but you need to submit your own original work.

Note that we may request you come in and explain your assignment in person if we

feel your assignment is too similar to another students’ work.

(2) This assignment has 3 parts and has in total 20 marks that correspond to 20% of

your final grade.

(3) Once completed, you will need to submit your ‘Microsoft Word’ document via

CloudDeakin. You must submit a single file only that contains a cover page with your

name and student ID.

Please do not submit it as a PDF as we will be doing a word count. Any tables, figures

and appendices will be included in the word count so use them wisely.

Please ensure the Word document is self-contained (i.e. all your tables and figures

should be in the word document). You will not need to submit a hardcopy.

(4) In this assignment you are examining the relationship between the annual US GDP

growth and the annual US domestic investment growth for the period 1960 to 2014.

You are also investigating the extent to which factors such as GDPs of US importers,

the bilateral distance, the geographical closeness and the cultural similarities

between the US and foreign markets determine the volume of US exports to those

countries.

Data

In this assignment, you will use two following datasets:

(1) Excel file MAE256_2016Tri2_USGrowth contains data on US annual GDP growth

rate (gdpgrowth) and US annual investment growth (investment) for the period

1960 to 2014. The data are obtained from the World Bank Development

Indicators Database (http://data.worldbank.org/data-catalog/world-

development-indicators).

(2) Excel file MAE256_2016Tri2_USBilateralExports includes data on US bilateral

exports in 2014. Specifically, the dataset includes the following variables:

importer: name of the importer (i.e., a country) of US exports

border: dummy variable that is equal to 1 if the US and the importer share

common border and equal to zero otherwise

language: dummy variable that is equal to 1 if the US and the importer share

the same language

export: by the US to the importer

logexport: the volume of exports in (natural) logarithm by the US to the

importer

logdistance: the bilateral distance in (natural) logarithm between the US and

the importer

代写 MAE256 T2 2016 – Assignment

代写 MAE256 T2 2016 – Assignment

loggdp: the GDP of the importer in (natural) logarithm

The data of US bilateral exports have been sourced from the UN COMTRADE Database

(http://comtrade.un.org/db/default.aspx).

Part 1: Descriptive Statistics and Hypothesis Testing

a) Using Excel, compute and present the descriptive statistics for the volume of US exports

to foreign markets (export in file MAE256_2016Tri2_USBilateralExports ): mean,

median, standard deviation, skewness and kurtosis. Provide a brief interpretation

of these descriptive statistics.

b) Compute and present the same descriptive statistics above for annual US population

growth (population in file MAE256_2016Tri2_USGrowth ).

Test the hypothesis that the mean annual US population growth is less than 1%. Use the

1% level of significance. What conclusion do you reach if you choose the 10% level of

significance instead? Explain your answer thoroughly.

[2 + 3 = 5 Marks]

Part 2: Simple Linear Regression Analysis

and Hypothesis Testing

a) Using data from Excel file MAE256_2016Tri2_USGrowth , estimate the following

regression model:

???_?????ℎ ? = ? 0 + ? 1 ?????????? ? + ? ?

Provide a full discussion of the regression results.

Test the null hypothesis that the US annual domestic investment growth has no

effect on the US annual GDP growth (i.e. H o : ? 0 =0 vs. H1: ? 1 ≠0). Use the level of

significance α = 5%.

b) Using data from Excel file MAE256_2016Tri2_USBilateralExports, estimate the

following regression of the US bilateral exports on the bilateral distance between

the US and the foreign market j:

????????? ??,? = ? 0 + ? 1 ??????????? ??,? + ? ?

Present the regression results and provide a full interpretation of the intercept and the

slope coefficient estimates of ? 0 and ? 1 . Given the regression results, what happens

to the US exports if the bilateral distance between the US and foreign markets decreases

by 50%?

c) Conduct a hypothesis test to see if a 100% increase in the bilateral distance between

the US and the foreign markets will reduce US bilateral exports by more than 150%.

Please show all the steps for the hypothesis test and use the level of significance of 5%.

[2+2+2 = 6 Marks]

Part 3: Multiple Regression Analysis

and Hypothesis Testing

a) Using data from Excel file MAE256_2016Tri2_USBilateralExports, estimate the

following gravity model of US bilateral exports:

????????? ??,? = ? 0 + ? 1 ?????? ? + ? 2 ??????????? ??,? + ? 3 ?????? ??,?

+ ? 4 ???????? ??,? +? ??,?

where ????????? ??,? is the volume of bilateral exports, ??????????? ??,? is the

bilateral distance between the US and foreign country j, ?????? ??,? is a dummy

variable measuring whether or not the US and the importer have a common border,

and ???????? ??,? is a dummy variable measuring whether or not the US and foreign

country j speak the same language.

Provide a detailed discussion and interpretation of the intercept and the slope

coefficients. Are all of the results expected? In the case that the results contradict

your expectation, provide a potential explanation(s).

b) Based on the multiple regression results you had in Part 3a, test the joint significance

of the variables loggdp, logdistance, border and language using 5% level of

significance. Show your steps and calculation.

[5 + 4 = 9 Marks]

END OF ASSIGNMENT

代写 MAE256 T2 2016 – Assignment

代写 MAE256 T2 2016 – Assignment