Table 10.

13
Table 10.13 gives data on imports, GDP and the Consumer Price
Index (CPI) for the United States over the period 1975-2005.
You are asked to consider the following model:

Solution:
Model:
In Importst = β1 + β2 In GDPt + β3 In CPIt
Assumption
Normality
H0 = The data is normal
H1 = The data is not normal
Level of Significance
α = 0.05
Solution:
Step 1:

Step 2
Step 3
Results:
Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

Imports .161 31 .039 .910 31 .013

a. Lilliefors Significance Correction

Conclusion: When we apply Kolmogorov-Smirnov test to

check normality it shows that the data is not Normal.
Homoscedastic:
H0 = All variances are Equal
H1 = All variances are not equal
Level of Significance
α = 0.05

Step 1

Step 2
Step 3
Results:
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .529

Approx. Chi-Square 222.488

Bartlett's Test of Sphericity df 3

Sig. .000

Regression Model:
Step 1:
Step 2:

Step 3:
Results:
 Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 159393.456 48889.905 3.260 .003

1 CPI -7444.520 960.510 -.731 -7.751 .000

GDP 230.395 12.771 1.702 18.040 .000

Y = 159393.456 - 7444.520CPI + 230.395GDP

Interpretation:
One unit increase in CPI the response 7444.520 on the average
decrease keeping the other effect constant.
One unit increase in GDP the response 230.395 on the average increase
keeping the other effect constant.

Table 8.6
Anova
H0 = all the panel ranking is same
H1 = all panel ranking is not equal
Level of significance
α = 0.05

Step 1:
Step 2:

Step 3
Results
 Tests of Between-Subjects Effects

Dependent Variable: Response

Source Type III Sum of df Mean Square F Sig.

Squares

Corrected Model 1325.238a 19 69.749 11.601 .000

Intercept 5763.013 1 5763.013 958.505 .000

Runs 1325.188 15 88.346 14.694 .000

PanelRanking .050 4 .013 .002 1.000

Error 360.750 60 6.013

Total 7449.000 80

Corrected Total 1685.988 79

a. R Squared = .786 (Adjusted R Squared = .718)

We can say that our all panel ranking mean are Statistically insignificant
so we accept our null hypothesis.
Assumption
Normality
Tests of Normality

PanelRanking Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

HPN .081 16 .200* .963 16 .712

JPN .090 16 .200* .949 16 .474

Response CAL .081 16 .200* .963 16 .712

DCM .081 16 .200* .963 16 .712

RGB .081 16 .200* .963 16 .712

Interpretation:
Our p value is greater than 0.05 so we can say that our data
follows normal distribution.

Variance Checking
Test of Homogeneity of Variance

Levene Statistic df1 df2 Sig.

Response Based on Mean .002 4 75 1.000

 Based on Median .002 4 75 1.000

Based on Median and with .002 4 74.936 1.000

adjusted df

Based on trimmed mean .002 4 75 1.000

Interpretation:
Our p valuer is greater than 0.05 so all the variances are same.