In a study of the influence of financial institutions on bond interest rates in a certain country, quarterly data over a period of 12 years were analyzed. The postulated model was y₁ = Bo + B₁×₁¡ + B₂x2₁ + ₁, where y; is the change over the quarter in the bond interest rates, X₁1 is the change over the quarter in bond purchases by financial institutions, and X2¡ is the change over the quarter in bond sales by financial institutions. The estimated regression coefficients are b₁ = 0.057 and b₂ = -0.033. Interpret these estimates. What is the correct interpretation of the coefficient estimates? Select the correct choice below and, if necessary, fill in the answer boxes within your choice. A. Each percent increase in the bond interest rates leads to a change in the estimated amount of bonds purchased by financial institutions by and a decrease in bond sales by financial institutions by OB. Each additional bond purchased by financial institutions leads to a change in the estimated bond interest rates by percent. Each additional bond sale by financial institutions leads to a change in the estimated bond interest rates by percent.
In a study of the influence of financial institutions on bond interest rates in a certain country, quarterly data over a period of 12 years were analyzed. The postulated model was y₁ = Bo + B₁×₁¡ + B₂x2₁ + ₁, where y; is the change over the quarter in the bond interest rates, X₁1 is the change over the quarter in bond purchases by financial institutions, and X2¡ is the change over the quarter in bond sales by financial institutions. The estimated regression coefficients are b₁ = 0.057 and b₂ = -0.033. Interpret these estimates. What is the correct interpretation of the coefficient estimates? Select the correct choice below and, if necessary, fill in the answer boxes within your choice. A. Each percent increase in the bond interest rates leads to a change in the estimated amount of bonds purchased by financial institutions by and a decrease in bond sales by financial institutions by OB. Each additional bond purchased by financial institutions leads to a change in the estimated bond interest rates by percent. Each additional bond sale by financial institutions leads to a change in the estimated bond interest rates by percent.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:In a study of the influence of financial institutions on bond interest rates in a certain country, quarterly data over a period
of 12 years were analyzed. The postulated model was y¡ = Bo + B₁×₁¡ + B₂X2; + &¡, where y; is the change over the
quarter in the bond interest rates, X₁₁ is the change over the quarter in bond purchases by financial institutions, and X2i is
the change over the quarter in bond sales by financial institutions. The estimated regression coefficients are b₁ = 0.057
and b₂ = -0.033. Interpret these estimates.
What is the correct interpretation of the coefficient estimates? Select the correct choice below and, if necessary, fill in the
answer boxes within your choice.
A. Each percent increase in the bond interest rates leads to a change in the estimated amount of bonds
purchased by financial institutions by and a decrease in bond sales by financial institutions by.
B. Each additional bond purchased by financial institutions leads to a change in the estimated bond interest rates
by percent. Each additional bond sale by financial institutions leads to a change in the estimated bond
interest rates by percent.
C. There is no meaningful interpretation of the regression coefficients for this application.
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