5>10MEANVIF⇒ THE MULTICOLLINEARITY IS FOUNDIN THE MODEL. BUT IT...

72. - ECONOMETRICS FINAL EXAM FACTORS AFFECTING QUANTITY OF NEW CARS SOLD FOREIGN TRADE UNIVERSITY STUDENTS 72. - ECONOMETRICS FINAL EXAM FACTORS AFFECTING QUANTITY OF NEW CARS SOLD FOREIGN TRADE UNIVERSITY STUDENTS
ECONOMETRICS FINAL EXAM FACTORS AFFECTING QUANTITY OF NEW CARS SOLD FOREIGN TRADE UNIVERSITY STUDENTS

72.5>10

MeanVIF

⇒

The multicollinearity is found

in the model. But it is not

necessary to cure because of the

statistical significance

s of model.

Note: The figures in (...) are t-statistic.

IX. Conclusion

The research has shown the relationship between the six economic variables

and the quantity of car sold in US in the period of 1975 to 1990. From the analysis

results, it can see that only four variables including prime interest rate, income,

population and price has relationship with number of new cars sold. The

unemployment and number of cars on the road do not hold effect. The income has

the most impact on the number of car sold in a positive way. Together with the

price, income variable has the positive relationship with the dependent variable. In

contrast, the prime interest rate and the population has a negative relationship with

the number of car sold.

However, when applying the result into reality, we found that population

variable does has impact on the number of new cars sold but the scale impact did

not as much as the result numbers told. This could come from the drawback of our

observations. The number of observations is small, the time is restricted in fifteen

years, the origin of the observations is not clear enough. All these things could lead

to some imprecise in our research result.

According to the result, the research has reached the main purpose of its. The

research has determined the significant factors to the number of car sold in US

( 1957-1990) and measured the impact of them on the dependent variable. However,

its drawback affected the judgement of us.

Based on the result of our research, we would like to have some suggestions

on the fiscal policy to the government. The research has shown the relationship

between the macroeconomic variables to the number of new cars sold, these three

variables could be affected by the decision of government. The government can use

their fiscal tool to adjust the prime interest rate, the price to get the best profit for

car firms in the national economy. Besides, the government can intervene into the

wages to adjust the income as well.

We would like to express our deep gratitude to our beloved teachers for your

guidance and support to help us finish our research and for all the time and

enthusiasm we received during the econometrics course.

X. References