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Econometrics Report

Topic:
Factors that affect the selfstudying time of students at Hanoi Foreign Trade University of Viet Nam

Group:
L Th Thu A19 CLC TCNH K50 Hong Th Thu Hng A21 CLC TCNH K50 Nguyn Th Thu Trang A21 CLC TCNH K50

TABLE OF CONTENTS
Part one: INTRODUCTION ........................................................................................................ 3 1. 2. 3. 4. 5. Topic introduction: ............................................................................................................. 3 Objects and Scope of survey .............................................................................................. 3 Investigated factors ............................................................................................................ 3 Survey Form. ....................................................................................................................... 4 Result. .................................................................................................................................. 5

Part two: ESTABLISHING REGRESSION MODEL .............................................................. 6 1. 2. 3. Population Regression Model ............................................................................................ 6 Variables Explanation ........................................................................................................ 6 Summary statistics: ............................................................................................................ 8

Part three: EMPIRICAL RESULTS ........................................................................................... 9 1. 2. Running The Regression Model ........................................................................................ 9 Hypothesis Testing............................................................................................................ 14

Part four: INTERPRETATION AND SUGGESTION ........................................................... 16 1. Interpretation: .................................................................................................................. 18

2. Application of this model: .................................................................................................. 18 Part five: CONCLUSION ........................................................................................................... 20 APPENDIX .................................................................................................................................. 21 REFERENCES ............................................................................................................................ 23

Part one

INTRODUCTION
1. Topic introduction:

Foreign Trade University students are well-known for being smart, active, responsive who always want to take advance in study and life. But how many of those have already had enough knowledge of spending time and its effect on studying, the essential thing to us as students. To realize what influence the selfstudying time of students, our group decided to choose Factors that affect the selfstudying time of students at Hanoi Foreign Trade University of Viet Nam as the topic of econometric report. In this report, we will be finding the factors that influence the times for studying at home of foreign trade students, which factors impact mostly and how should we interpret the conclusion from the result of data. Our group hope that we can bring an viewpoints in the way student using their time in studying and helpful advice.

2.

Objects and Scope of survey

Our study, information and data were collected from the Foreign Trade University in Hanoi - one of the most famous universities in Vietnam, which have trained a lot of potential students. We distributed the online survey for students of K48, K49, K50 and K51 that are studying in Hanoi Foreign Trade University.

3.

Investigated factors

To carry out this research of Factors impact the studying time of FTU students , our group consider 10 factors to focus on:
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Time for Outdoor Activities (For playing, friends, part-time work) Time for Classes Year at FTU Time for Chores Time to the nearest Test Gender Rate of Competition in Studying Environment Parents Strictness State of Relationship Consideration of the Importance of Studying

4.

Survey Form.

To investigate those factors, we use the following form with 11 question. ID


1

Question
What is the average amount of time you use to study yourself? (including self-studying and group-studying) How much time you spend on outdoor activities?

Answer
hours per week

(including entertaining time, social activities time, parttime job time)

hours per week hours per week year hours per week days Male Female Yes No Very strict. Not very strict.

3 4 5 6 7

How much time you spend on classes on average? Which year at FTU are you in? How much time you spend on chores on average? How much longer will you have to take a test? What is your gender?

Is your studying environment competitive?

Are your parents strict with your studying?

No strict at all. 10 Are you single or not? Yes No Very important. 11 Is studying important in your opinion? Not very important. No important at all.

5.

Result.

99 surveys were sent and recorded but only 64 were valid. 64 random students were become the objects surveyed for this issue. Based on collected data from valid surveys, we conducted imputing data.

Part two

ESTABLISHING REGRESSION MODEL


1. Population Regression Model

2. Variables Explanation Kinds of Variable


Dependent variable

ID Variable
1 Y

Meaning
Time for selfstudying. Time for Outdoor

Value
exact number

Predicted sign

Expectation

Time for outdoor activities may exact number +/have positive or negative effect on self-studying time. Time for classes may have

X1

Activities (For playing, friends)

Quantitative variables 3 X2 Time for Classes exact number

+/-

positive or negative effect on self-studying time.

X3

Year at FTU

exact number

The year at FTU +/may have positive or

negative effect on self-studying time. The more time is Time for Chores exact number spent on chores, the less time is spent on studying. The less time is left for the 6 X5 Time to the nearest Test exact number nearest test, the more time is spent on studying. 1 for 7 D1 Gender male 0 for female +/Gender may have positive or negative effect on self-studying time. The more competitiveness + there is, the more time is spent on studying. The stricter parents are with Parents Strictness 2 or 1 or 0 children's + studying, the more time is spent on studying.

X4

Rate of 8 D2 Competition in Studying Environment

1 for yes 0 for no

Binary variables

D3

1 for State of Relationship single 0 for not single +/-

State of relationship may have positive or negative effect on self-studying time. The more

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D4

Consideration 11 D5 of the Importance of Studying 2 or 1 or 0 +

important the studying is considered, the more time is spent on studying.

3. Summary statistics:

Valuable
Y X1 X2 X3 X4 X5 D1 D2 D3 D4 D5

Mean
15,9453 18,2969 19,5469 2,34375 10,8125 15,2031 0,3125 0,82813 0,92188 0,71875 1,5

Median
15 15 17,75 2 7,5 10 0 1 1 1 2

Minimum Maximum
1 2 2 1 1 1 0 0 0 0 0 35 70 100 4 35 60 1 1 2 1 2

Standard Deviation
8,307619426 14,14840946 12,35121412 1,034087007 8,030946006 14,90195005 0,463512405 0,377271765 0,477777652 0,449609205 0,684653197

Part three

EMPIRICAL RESULTS
1. Running The Regression Model a. Model 1: Before running the regression model, we check the normality problem: Hypothesis H0: There is no normality problem. H1: Normality problem exists. Thanks to Gretl, we have the following result:

As can be seen clearly from the table and graph, P-value= 0.9501 > =0.05. We conclude that error is normally distributed and there is no problem of normality of residual.

We run the regression on Gretl and receive the result as follow:

As we can see, there are 4 variables that has statistical significance, they are X2, D1,D2 and D5. 6 variables left have not had statistical significance. The signs of significant variable follows our expectation. R- squared is 38.15% and Adjusted R-squared is 26.48%. Therefore we will use the new model 2 with Yi and 4 variables: X2, D1, D2 and D5.
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b. Model 2: Before running the regression model 2, we check the normality problem: Hypothesis H0: There is no normality problem. H1: Normality problem exists. Thanks to Gretl, we have the following result:

As can be seen clearly from the table and graph, P-value= 0.2961 > =0.05. We conclude that error is normally distributed and there is no problem of normality of residual.

We run regression with 4 significant variables.

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Our model has R2 = 28,88% and Adjusted R2= 24,06%. The sign all variables is followed our expectations. We will continue to test this model 2. As can be seen from the result above: - P-value (2) = 0,0859 < =0.1 Time for classes affects the result. - P-value (6) = 0,1919 >=0.1 Gender does not affect the result. - P-value (7) = 0,0338 < =0.1 The rate of competition affects the result. - P-value (10) = 5,39e-05 < =0.1 Consideration of the importance of studying affects the result. Therefore we will use the new model 3 with Yi and 3 variables: X2, D2 and D5. c. Model 3: Before running the regression model 3, we check the normality problem: Hypothesis H0: There is no normality problem. H1: Normality problem exists. Thanks to Gretl, we have the following result:
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As can be seen clearly from the table and graph, P-value= 0.30244 > =0.05. We conclude that error is normally distributed and there is no problem of normality of residual.

We run regression with 3 significant variables.

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Our model has R2 = 26,78% and Adjusted R2= 23,12%. The sign all variables is followed our expectations. And with the confidence level of 10%, all the variables have statistical significance. And we will continue to test this model 3.

2.

Hypothesis Testing

The confidence level of all the tests below is 5% a. Testing the suitability of SRF model with the sample statistics

Based on the Model 2 above: P-value (F statistics) = 0,000293< =0.05 the SRF model is suitable with the sample statistics b. Model specification Lack of necessary variable.

In this part we will test if we have just omitted necessary variable. Using Ramseys reset test, we have the following result:
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As can be seen from the result, the P-value is greater than =0.05 in all the test. So we can conclude that we have not omitted necessary variables. c. Multicollinearity

Run auxiliary regression models one by one with variables, we have some compatible R2 and F as follow: With k = 4, n = 64, X2:

D2:

D5:

As can be seen from the result, the FXi, Di are all smaller than the F(k-2,n-k+1) = F(2,61) so we can conclude that there is no multicollinearity. d. Heteroskedasticity In this part, we continue with the second consumption using White test.
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Hypothesis: H0: There is no heteroskedasticity problem. H1: Heteroskedasticity problem exists. The software gives us the result below:

P-value is equal to 0.695994, which is larger than =0.05 concluding that: we do not reject Ho. In other words, there is no problem of heteroskedasticity. e. Normality of Residual

In this part, we will answer the question whether the error term Ui has normal distribution. This work has already been done in the part 1. Running The Regression Model. f. Autocorrelation

As can be seen from the statistic of Durbin-Watson test, the p-value is 0.445703 > =0.05, so we can conclude that the model has no problem with autocorrelation.

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Part four

INTERPRETATION AND SUGGESTION


1. Interpretation:

After running regression and testing all the assumptions for multiple regressions, we have the following equation with R2 = 26,78%

Studying time = 3,77885 + 0,144053*Time for classes + 5,46954*Rate of Competition + 5,60707 *Importance of Studying + Ui (3.1)

According to the function (3.1), we can conclude as follows: - 1: Providing that others factors are unchanged, when the time for classes increases 1 hour, the working time increases by 0,144053 hours and vice versa. - 2: Providing that other factors are unchanged, when there is competitiveness in studying environment, the studying time increases by 5,46954 hours and vice versa. - 3: Providing that other factors are unchanged, when the importance of studying to a student increases 1 times, the working time increases by 5,60707 hours and vice versa.

2. Application of this model: From this model we can create a list of factors that have the most influence on time for studying of students in Foreign Trade University.
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It can be seen that the more classes students take part in, the more time they have to spend on studying at home. But they have to consider carefully went enroll in any classes because one more classes means that more time spent and more stress as well. Students should try to balance between studying and learning to have a healthy mental life. Besides, it can be concluded that competitiveness is actually a good way for teachers to encourage students to spend more time in studying. Teachers should find methods to increase the rate of competitiveness in their classes such as rewarding points for active and diligent students, holding more small competition in classes This result is also meaningful to students. It can be seen that to be more concentrated in studying they should pay attention to other students and try to keep up with them as well as to be the best in every classes, departments and so on. Last but not least, attitude towards studying is also inevitably important. Students should define their goals clearly to distribute their time appropriately. This is also true whenever people try to achieve anything, definite targets and plans are essential. And it is better to have a fixed point of view.

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Part five

CONCLUSION
From our regression model, we can conclude that among 10 variables, there are some variables that follow our expectation but some do not. This indicates the gap between theory and reality, which can be unpredictable and impossible to fulfill without the help of subjects like Econometrics. Besides, during the process of preparing this report, we have to face some problems. The most challenged problem arising from the first step is that choosing the independent variables to design our survey because there are many factors that impact the studying time of students. And it is not easy to create the short list which has to have enough factor but be as simple as possible. Beside, preparing the survey form is also another challenge because if the questions are not exact and clear enough, the result may change unexpectedly. Last but not least, it is also not easy to draw the right and meaningful conclusion from the result of the research, which is an inevitably important steps in the process of research. However during the time of doing this exercise we had chance to practicing team-working and understanding more about the econometrics and its application in life. To do this research paper, we hope to have an outlook into the self-studying time of foreign trade universitys students as a representative for the students as a whole. From the result of this paper, we also suggest some solutions for students to manage their time best to reach their goal at universities. We are sincerely grateful for the considerable help of Dr. T Thy Anh and MA. Thi Long during the process of this report.

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APPENDIX
SURVEY RESULT
Outd oor Activ ites Time (X1) 20 10 7 39 10 70 12 25 28 15 20 30 3 7 8 15 20 5 10 10 20 8 2 8 10 10 10 20 40 3 4 Time Chore to the s nearest Time Test (X4) (X5) 20 7 1 16 7 3 6 2 12 7 7 21 9 2 4 15 3 2 5 7 35 14 6 7 4 10 14 2 10 3 10 30 15 3 32 10 10 14 1 3 40 30 14 5 2 3 12 50 30 5 60 60 40 20 5 12 4 8 4 3 27 28 Impor tance of Study (D5) 0 0 0 0 0 2 2 0 0 2 1 2 2 2 2 2 1 2 2 1 2 1 2 2 1 1 2 1 2 2 2
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Self Study Time (Y) 1 2 3 3,5 4 4 6 6 6 7 7 7 8 8 8 8 8 10 10 10 10 12 14 14 14 14 14 14 14 15 15

Class es Time (X2) 2 20 24 17,5 20 17 20 12 15 25 12 28 16 24 8 18 15 16 10 10 15 13,5 15 15 20 20 25 18 10 12 18

Yea r (X3 ) 2 2 1 2 3 4 2 4 3 2 4 2 3 2 1 2 4 2 1 4 3 2 2 4 3 4 1 4 2 2 2

Gend er (D1) 1 0 0 0 1 1 1 0 0 0 0 1 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0

Comp etition (D2) 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0

Parents' Strictne ss (D3) 1 1 1 1 1 1 1 1 1 2 1 1 1 0 1 2 0 0 1 0 1 1 1 1 0 1 1 0 1 2 1

Relatio n- ship (D4) 0 1 1 1 1 1 1 0 1 1 1 0 1 0 0 1 0 1 0 1 1 1 1 1 1 1 0 1 1 1 1

15 15 15 18 18 18 18 20 20 20 20 20 20 20 21 21 21 21 21 21 21 22 23 24 25 28 28 30 30 30 30 35 35

5 15 50 6 15 20 38 8 10 10 15 15 20 35 8 10 10 10 21 25 30 10 15 30 30 15 30 5 6 20 70 30 35

18 16 12 15 30 20 20 25 20 20 12 15 25 15 28 12 30 100 42 17 20 24 18 15 10 12 40 28 11 28 12 12 18

3 2 1 2 1 2 2 2 2 3 4 2 2 4 1 1 1 3 2 4 4 1 2 4 2 2 3 2 1 3 1 1 1

8 6 20 3 15 20 15 8 15 7 15 7 25 35 28 7 15 7 14 10 7 7 21 30 14 10 14 21 1 5 2 7 2

4 4 1 20 7 15 14 5 30 7 1 30 3 14 14 3 7 4 19 3 20 6 25 7 15 15 60 14 6 10 4 2 4

0 1 0 0 0 0 0 0 0 1 0 1 1 1 0 1 0 0 1 0 0 0 1 1 0 1 0 0 1 0 0 0 0

0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 1 0 1 0 0

1 1 1 1 1 0 1 1 1 2 1 1 1 1 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 2 1 1 1

0 1 1 0 1 1 1 0 0 0 0 1 0 1 1 1 1 1 1 1 0 1 1 0 1 0 1 1 1 1 1 1 1

1 2 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 2 2 2 2 1 2 2 2 2 2 2 1 1 2 2

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REFERENCES
Books - Econometrics Lecture (Vietnamese Edition) Published by National Economics University James H. Stock and Mark W. Watson (2008), Introduction to Econometrics (Brief Edition), US: Pearson. - Damodar Gujarati, Basic Econometrics.

Lecturers help - Dr. T Thy Anh Head of Faculty of International Economics FTU - MA. Thi Long Lecturer of Faculty of International Economics FTU.

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