The Following data is given for the period 1999-2003 Interest rate Inflation i π 1999 4.7 4.4 2000 4.6 5.4 2001 6.3 5.7 2002 4.8 4.6 2003 2.9 2.4
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The Following data is given for the period 1999-2003
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Interest rate |
Inflation |
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i |
π |
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1999 |
4.7 |
4.4 |
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2000 |
4.6 |
5.4 |
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2001 |
6.3 |
5.7 |
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2002 |
4.8 |
4.6 |
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2003 |
2.9 |
2.4 |
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Obtain residuals of the regression. Calculate variance of the residuals and the standard errors of the parameters
Taking interest rate as independent variable (X) and inflation rate as dependent variable (Y).
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