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 代写留学生论文The assignment must also be submitted in electronic format to the ‘Turnitin’ drop-box in the Blackboard site for this module and the Turnitin reference code added to the hand-in sheet

 You are advised to plan your work carefully and back-up your work. Computing and printing problems will NOT be accepted as reasons for non-submission

 For your information when preparing your coursework essay, refer to the following:
o University Regulation on the Presentation of Work for Formal Assessment (URL: www.brad.ac.uk/admin/acsec/QA_Hbk/QAH5_19.html)
o University Statement on Academic Integrity (URL:www.brad.ac.uk/admin/acsec/assu/statement_on_academic_integrity.htm)
o Student Handbook on Plagiarism - remember to fully reference your work in the Harvard format.

This study requires each student to compile a sample of observations for 15 countries:
for the period of 2007 or 2008.
Each student will be given a specific set of countries which they must use.

DATA:
(1) QMSE= quality of maths and science education

Data for this on a 1-7 point scale can be obtained from the world economic forum at: https://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm where you can download the Global Competitiveness Report (GCR).

(2) Real GDP per capita

You can use the country profile figure in the complete Global Competitiveness Report which is for 2008 although other sources are also available.

QUESTIONS:
1. Present the data in a table showing the names of the variables. Make sure the full definitions and sources of each variable are given.
[15 marks]

2. The first equation to be estimated is:

ln(GDP i) = b0 + b1 QMSEi + ui

where the variables correspond to those listed above. ln stands for natural logarithm
and the subscript i represents the observation (country).

Answer these questions:

(i) In terms of Economics, how would you describe the hypothesis that this equation will test?
(ii) What sign do you expect b1 to be and why?
(iii) Explain precisely the meaning of a one unit increase in QMSE in this model.
(iv) ‘b0 has to be positive because QMSE is positive’. True or False? Explain.
(v) Why is the final term (u) included in the equation?
[10 marks]

3. Estimate the above equation by OLS and present the results in a suitable table
(N.B. marks will be lost for simply pasting over the computer output)
(i) Comment on the plausibility of your b1 value with respect to your answer to 2(ii).
(ii) Comment on the R squared statistic for this equation.
(iii) Using your estimated equation work out how much of a change in real GDP would be predicted to occur if a country went from a score of 3 to a score of 5 on QMSE.
(iv) Explain what assumptions need to be made about the u term in order to carry out t-tests on the parameters.
[20 marks]

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