A researcher interested in explaining the level of foreign reserves for the country of Barbados estimated the following multiple regression model using yearly data spanning the period 2001 to 2016: FR=a+BOIL+YEXP+8FDI Where FR = yearly foreign reserves ($000's), OIL = annual oil prices, EXP = yearly total exports ($000's) and FDI = annual foreign direct investment ($000's). The sample of data was processed using MINITAB and the following is an extract of the output obtained: %3D Predictor Goef StDev t-ratio p-value Constant 5491.38 2508.81 2.1888 0.0491 OIL 85.39 18.46 4.626 0.0006 EXP -377.08 112.19 0.0057 160.66 -2.471 ** FDI -396.99 S = 2.45 R-sq = 96.3% R-sq (adj) = 95.3% Analysis of Variance Source DF SS MS Regression 3. 1991.31 663.77 ?? Error 12 77.4. 6.45 Total 15

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  1. Hence test whether ? is significant. Give reasons for your answer
  2. Perform the F Test making sure to state the null and alternative 
  3. Given an interpretation of the term “R-sq” and comment on its value
A researcher interested in explaining the level of foreign reserves for the country of Barbados
estimated the following multiple regression model using yearly data spanning the period 2001 to
2016:
FR=a+BOIL+YEXP+8FDI
Where FR yearly foreign reserves ($000's), OIL = annual oil prices, EXP = yearly total exports
($000's) and FDI = annual foreign direct investment ($000's). The sample of data was processed
using MINITAB and the following is an extract of the output obtained:
Predictor
Coef
StDev
t-ratio
p-value
Constant
5491.38
2508.81
2.1888
0.0491
OIL
85.39
18.46
4.626
0.0006
EXP
-377.08
112.19
0.0057
FDI
-396.99
160.66
-2.471
S = 2.45
R-sq
96.3%
R-sq(adj)
95.3%
Analysis of Variance
Source
DF
SS
MS
Regression
1991.31
663.77
??
Error
12
77.4.
6.45
Total
15
Transcribed Image Text:A researcher interested in explaining the level of foreign reserves for the country of Barbados estimated the following multiple regression model using yearly data spanning the period 2001 to 2016: FR=a+BOIL+YEXP+8FDI Where FR yearly foreign reserves ($000's), OIL = annual oil prices, EXP = yearly total exports ($000's) and FDI = annual foreign direct investment ($000's). The sample of data was processed using MINITAB and the following is an extract of the output obtained: Predictor Coef StDev t-ratio p-value Constant 5491.38 2508.81 2.1888 0.0491 OIL 85.39 18.46 4.626 0.0006 EXP -377.08 112.19 0.0057 FDI -396.99 160.66 -2.471 S = 2.45 R-sq 96.3% R-sq(adj) 95.3% Analysis of Variance Source DF SS MS Regression 1991.31 663.77 ?? Error 12 77.4. 6.45 Total 15
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