1. The Following data is given for the period 1999-2003 Interest rate Inflation i 1999 2000 4.7 4.4 4.6 5.4 2001 6.3 5.7 2002 4.8 4.6 2003 2.9 2.4 a. According to Fisher Equation "a rise in inflation also rises the nominal interest rate by the same amount". Construct a regression model by determining dependent and independent variables according to this theory. b. Obtain residuals of the regression. Calculate variance of the residuals and the standard errors of the parameters (15 p) (note: use the table above for calculations, just write down the final results here). c. Test significance of the slope parameter (the parameter of the independent variable) at 5% significance level. Is it in line with the proposition?
1. The Following data is given for the period 1999-2003 Interest rate Inflation i 1999 2000 4.7 4.4 4.6 5.4 2001 6.3 5.7 2002 4.8 4.6 2003 2.9 2.4 a. According to Fisher Equation "a rise in inflation also rises the nominal interest rate by the same amount". Construct a regression model by determining dependent and independent variables according to this theory. b. Obtain residuals of the regression. Calculate variance of the residuals and the standard errors of the parameters (15 p) (note: use the table above for calculations, just write down the final results here). c. Test significance of the slope parameter (the parameter of the independent variable) at 5% significance level. Is it in line with the proposition?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Please answer the question parts A, B and C given based on the example i provided. thank you in advance.
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