In order to complete this problem set, it is helpful to refer to Chapters 1 through 4 in Stock and
Watson. This assignment is due at the beginning of class on Tuesday.
1. In EViews, estimate a linear regression equation using the El Paso vehicle registration and
population data from the problem set data workbook. Note that the dependent variable is the
number of registered vehicles and population is the explanatory variable. Be sure to interpret the
results you obtain.
El Paso
El Paso
County
County
Registered
Population
Vehicles, 1000s
1000s
Year
CARS
POP
1969
182.025
364.022
1970
181.883
360.462
1971
203.869
369.189
1972
212.266
378.364
1973
225.501
398.203
1974
235.533
411.532
1975
274.781
427.292
1976
262.130
440.333
1977
270.361
450.007
1978
282.738
460.611
1979
296.099
472.343
1980
309.533
483.711
1981
290.775
497.523
1982
298.800
511.892
1983
309.533
521.038
1984
328.549
529.668
1985
344.199
538.809
1986
341.486
549.592
1987
344.099
559.479
1988
351.540
568.804
1989
357.254
580.982
1990
356.312
595.350
1991
362.404
608.206
1992
341.702
619.138
1993
347.386
634.044
1994
366.326
646.181
1995
369.504
654.250
1996
396.920
656.482
1997
400.611
665.066
1998
429.326
671.250
1999
443.443
675.397
2000
445.849
681.729
2001
457.576
689.163
2002
477.725
696.446
2003
501.426
705.200
2004
505.459
717.652
2005
533.438
728.095
2006
562.591
744.795
2007
575.054
755.578
2008
567.693
769.930
2009
570.744
786.759
2010
589.193
803.548
2011
597.092
819.796
2012
615.285
832.118
2013
626.930
830.585
2014
641.825
833.370
2015
657.944
831.382
2016
660.861
834.112
2017
671.024
836.087
2018
670.643
835.590
2019
674.628
837.501
2020
670.804
865.984
2021
685.900
867.947
2. Use the regression output to test a null hypothesis that population has no effect on the number
of cars registered in El Paso County. Be sure to state the null and alternative hypotheses.
3. Also in EViews, plot a scatter diagram that includes registered vehicles on the vertical axis
and population on the horizontal axis. Briefly discuss any information that can be discerned from
the graph.
4. Answer Problem 3.5 on Page 90 of Stock and Watson.
5. As the data above indicate, population growth usually leads to more vehicle registrations.
Forecast the number of registered vehicles in El Paso if the population increases to 875 thousand.
When population increased in 2020, did El Paso County vehicle registrations also increase?
Based on real world conditions, explain why this may have occurred.
El Paso El Paso
County County
Registered Population
Vehicles,
1000s
1000s
Year CARS POP
1969 182.025 364.022
1970 181.883 360.462
1971 203.869 369.189
1972 212.266 378.364
1973 225.501 398.203
1974 235.533 411.532
1975 274.781 427.292
1976 262.130 440.333
1977 270.361 450.007
1978 282.738 460.611
1979 296.099 472.343
1980 309.533 483.711
1981 290.775 497.523
1982 298.800 511.892
1983 309.533 521.038
1984 328.549 529.668
1985 344.199 538.809
1986 341.486 549.592
1987 344.099 559.479
1988 351.540 568.804
1989 357.2.
In order to complete this problem set- it is helpful to refer to Chapt.pdf
1. In order to complete this problem set, it is helpful to refer to Chapters 1 through 4 in Stock and
Watson. This assignment is due at the beginning of class on Tuesday.
1. In EViews, estimate a linear regression equation using the El Paso vehicle registration and
population data from the problem set data workbook. Note that the dependent variable is the
number of registered vehicles and population is the explanatory variable. Be sure to interpret the
results you obtain.
El Paso
El Paso
County
County
Registered
Population
Vehicles, 1000s
1000s
Year
CARS
POP
1969
182.025
364.022
1970
181.883
360.462
1971
203.869
8. 836.087
2018
670.643
835.590
2019
674.628
837.501
2020
670.804
865.984
2021
685.900
867.947
2. Use the regression output to test a null hypothesis that population has no effect on the number
of cars registered in El Paso County. Be sure to state the null and alternative hypotheses.
3. Also in EViews, plot a scatter diagram that includes registered vehicles on the vertical axis
and population on the horizontal axis. Briefly discuss any information that can be discerned from
the graph.
4. Answer Problem 3.5 on Page 90 of Stock and Watson.
5. As the data above indicate, population growth usually leads to more vehicle registrations.
Forecast the number of registered vehicles in El Paso if the population increases to 875 thousand.
When population increased in 2020, did El Paso County vehicle registrations also increase?
Based on real world conditions, explain why this may have occurred.
El Paso El Paso
County County
Registered Population
