Hypothesis and Rationale for Real World Situation
Y=f(X1, X2,X3,…)

Y = _________________________

X1 = ________________________

X2 = ________________________

X3 = ________________________

Define Y, X1, X2,and X3.  Be specific.  At least two of the three independent variables should be quantitative.  One may be qualitative.  Give units of measure (dollars, guilders, tons, kilograms, etc.).  Tell why you think it belongs in the model (not just direction of change).  You must explain why a change in the value of an X will cause the value of Y to change or lead to a predictable change in Y.

Y =
 
 
 
 

X1 =
 
 
 
 

X2 =
 
 
 
 

X3 =
 
 
 
 
 

Give time period(s) you have in mind (such as Spring 1990 or 1950-1998) and the units of observations (such as a single firm’s quarterly values or 48 randomly selected firms’ values).

Observation units = ____________________________________________

Time period(s) = _______________________________________________