The forecaster in augments her AR(4) model for IP growth to include four lagged values of ΔRt, where Rt is the interest rate on 3-month U.S. Treasury bills (measured in percentage points at an annual rate).a. The Granger-causality F-statistic on the four lags of ΔRt is 4.16. Dointerest rates help predict IP growth? Explain.b. The researcher also regresses ΔRt on a constant, four lags of ΔRt andfour lags of IP growth. The resulting Granger-causality F-statisticon the four lags of IP growth is 1.52. Does IP growth help to predictinterest rates? Explain.
The forecaster in augments her AR(4) model for IP growth to include four lagged values of ΔRt, where Rt is the interest rate on 3-month U.S. Treasury bills (measured in percentage points at an annual rate).a. The Granger-causality F-statistic on the four lags of ΔRt is 4.16. Dointerest rates help predict IP growth? Explain.b. The researcher also regresses ΔRt on a constant, four lags of ΔRt andfour lags of IP growth. The resulting Granger-causality F-statisticon the four lags of IP growth is 1.52. Does IP growth help to predictinterest rates? Explain.
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.1: Logistic Functions
Problem 16E: Cable TV The following table shows the number C. in millions, of basic subscribers to cable TV in...
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The forecaster in augments her AR(4) model for IP growth to include four lagged values of ΔRt, where Rt is the interest rate on 3-month U.S. Treasury bills (measured in percentage points at an annual rate).
a. The Granger-causality F-statistic on the four lags of ΔRt is 4.16. Do
interest rates help predict IP growth? Explain.
b. The researcher also regresses ΔRt on a constant, four lags of ΔRt and
four lags of IP growth. The resulting Granger-causality F-statistic
on the four lags of IP growth is 1.52. Does IP growth help to predict
interest rates? Explain.
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