A regression equation has been estimated GFCF = a + BDOMDEBT GFCF is the change in Gross Fixed Capital Formation (investment) and is in US dollars. DOMDEBT is the change in domestic debt and is in US dollars. R Square Adjusted R Sq Standard Erro Observations 0.935659 0.935659 307087.1 32 Coefficients Standard Error t Stat P-value 53826.76 Intercept DOMDEBT 75957.68 0.708641 0.4842 0.991086 0.046656 21.24254 (a.) What is the value of n? (b.)State the equation for the line of regression that predicts the change in Gross Fixed Capital Formation, y, in terms of the change in domestic debt, x. (c.) What information is provided by the R squared? Explain how it is related to the correlation coefficient between the change in Gross Fixed Capital Formation and the change in domestic debt. (d.)Are the intercept and slope coefficient statistically different from zero? How do we know? (c.) What is the calculation to find the t stat to test the null hypothesis that the slope coefficient is equal to zero? H,: ß = 0 (£.) Suppose that the change in domestic debt was zero. According to the model, what would happen to Gross Fixed Capital Formation? (g.) Comment on what the estimated model tells you about the relationship between domestic debt and investment.
A regression equation has been estimated GFCF = a + BDOMDEBT GFCF is the change in Gross Fixed Capital Formation (investment) and is in US dollars. DOMDEBT is the change in domestic debt and is in US dollars. R Square Adjusted R Sq Standard Erro Observations 0.935659 0.935659 307087.1 32 Coefficients Standard Error t Stat P-value 53826.76 Intercept DOMDEBT 75957.68 0.708641 0.4842 0.991086 0.046656 21.24254 (a.) What is the value of n? (b.)State the equation for the line of regression that predicts the change in Gross Fixed Capital Formation, y, in terms of the change in domestic debt, x. (c.) What information is provided by the R squared? Explain how it is related to the correlation coefficient between the change in Gross Fixed Capital Formation and the change in domestic debt. (d.)Are the intercept and slope coefficient statistically different from zero? How do we know? (c.) What is the calculation to find the t stat to test the null hypothesis that the slope coefficient is equal to zero? H,: ß = 0 (£.) Suppose that the change in domestic debt was zero. According to the model, what would happen to Gross Fixed Capital Formation? (g.) Comment on what the estimated model tells you about the relationship between domestic debt and investment.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Please help me to solve d,e and f of the attached question please show full working out, thank you
Transcribed Image Text:A regression equation has been estimated
GFCF = a + BDOMDEBT
GFCF is the change in Gross Fixed Capital Formation (investment) and is in US dollars.
DOMDEBT is the change in domestic debt and is in US dollars.
0.935659
R Square
Adjusted R Sq
Standard Erro
0.935659
307087.1
Observations
32
Coefficients Standard Error
t Stat
P-value
0.4842
Intercept
DOMDEBT
53826.76
75957.68
0.708641
0.991086
0.046656
21.24254
(a.) What is the value of n?
(b.) State the equation for the line of regression that predicts the change in Gross Fixed
Capital Formation, y, in terms of the change in domestic debt, x.
(c.) What information is provided by the R squared? Explain how it is related to the
correlation coefficient between the change in Gross Fixed Capital Formation and the
change in domestic debt.
(d.) Are the intercept and slope coefficient statistically different from zero? How do we
know?
(e.) What is the calculation to find the t stat to test the null hypothesis that the slope
coefficient is equal to zero? H9: ß = 0
(f.) Suppose that the change in domestic debt was zero. According to the model, what
would happen to Gross Fixed Capital Formation?
(g.) Comment on what the estimated model tells you about the relationship between
domestic debt and investment.
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