Discuss which model better explains changes in the dependant variable.

Write a 4-5 page paper in which you:

1. Develop a theory based on the first assignment that could be estimated with multiple regression.
2. State the model in mathematical terms.
3. Estimate the model and interpret the meaning of the coefficient estimates.
4. Compare the results from the regression in Assignment 1 with the results from the regression in Assignment 2.
5. Discuss which model better explains changes in the dependant variable.

Your assignment must:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

The specific course learning outcomes associated with this assignment are:

• Apply econometrics to conduct and present the analysis of economic data to support business and public policy decisions.
• Apply regression analysis to interpret the characteristics of populations and test hypotheses.
• Use technology and information resources to research issues in econometrics.
• Write clearly and concisely about econometrics using proper writing mechanics.