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: ??=?+????+????+???? 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 F p Regression 3 1991.31 663.77 ? ?? Error 12 77.4 6.45 Total 15 What is dependent and independent variables? Fully write out the regression equation

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: ??=?+????+????+???? 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 F p Regression 3 1991.31 663.77 ? ?? Error 12 77.4 6.45 Total 15 What is dependent and independent variables? Fully write out the regression equation

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 3E

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In addition to testing for purchasing power parity (PPP) by plotting individual points (combinations of interest rate differentials and changes in the spot rate of the "foreign" currency between two countries) on a graph, you can also test for PPP using regression analysis. In particular, consider the following regression model: ef = ao + a1 1+In 1+If (+/- 1) + H +μ Where ef is the percentage change in the foreign currency value, I is the inflation rate of the home currency, and If is the inflation rate of the foreign currency. ao and a1 are coefficients to be estimated, while μ is the error term. True or False: Results of this regression analysis will be the same, regardless of the base period chosen. True False Which of the following factors influence the exchange rate of a currency? Check all that apply. Changes in relative inflation rates Changes in relative interest rates Changes in government controls Changes in expectations of future exchange rat by only the Changes in relative…

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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	F	p
Regression	3	1991.31	663.77	?	??
Error	12	77.4	6.45
Total	15