Statistics for Management and Economics
10th Edition
ISBN: 9781285425450
Author: Gerald Keller
Publisher: Cengage Learning
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Chapter 16.2, Problem 11E
To determine
Determine least square line and interpret the coefficient.
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not use ai please
not use ai please
In this question, you will test relative purchasing parity (PPP) using the data. Use yearly
data from FRED website
from 1971 to 2020: (i) The Canadian Dollars to U.S. Dollar Spot
Exchange Rate (ER) (ii) Consumer price index for Canada (CAN_CPI), and (iii) Consumer price
index for the US (US_CPI). Inflation is measured by the consumer price index (CPI). The relative
PPP equation is:
AE CAN$/US$
ECAN$/US$
=
π CAN - πUS
Submit the Excel sheet that you worked on.
1. First, compute the percentage change in the exchange rate (left-hand side of the equation).
Caculate the variable for each year from 1972 to 2020 in Column E (named Change_ER) of
the Excel sheet. For example, for 1972, compute
E3: (B3-B2)/B2).
ER1972 ER1971
ER 1971
(in Excel, the formula in cell
Chapter 16 Solutions
Statistics for Management and Economics
Ch. 16.2 - Prob. 1ECh. 16.2 - Prob. 2ECh. 16.2 - Prob. 3ECh. 16.2 - Prob. 4ECh. 16.2 - Prob. 5ECh. 16.2 - Prob. 6ECh. 16.2 - Prob. 7ECh. 16.2 - Prob. 8ECh. 16.2 - Prob. 9ECh. 16.2 - Prob. 10E
Ch. 16.2 - Prob. 11ECh. 16.2 - Prob. 12ECh. 16.2 - Prob. 13ECh. 16.2 - Prob. 14ECh. 16.2 - Prob. 15ECh. 16.2 - Prob. 16ECh. 16.2 - Prob. 17ECh. 16.2 - Prob. 18ECh. 16.3 - Prob. 19ECh. 16.3 - Prob. 20ECh. 16.3 - Prob. 21ECh. 16.4 - Prob. 22ECh. 16.4 - Prob. 23ECh. 16.4 - Prob. 24ECh. 16.4 - Prob. 25ECh. 16.4 - Prob. 26ECh. 16.4 - Prob. 27ECh. 16.4 - Prob. 28ECh. 16.4 - Prob. 29ECh. 16.4 - Prob. 30ECh. 16.4 - Prob. 31ECh. 16.4 - Prob. 32ECh. 16.4 - Prob. 33ECh. 16.4 - Prob. 34ECh. 16.4 - Prob. 35ECh. 16.4 - Prob. 36ECh. 16.4 - Prob. 37ECh. 16.4 - Prob. 38ECh. 16.4 - Prob. 39ECh. 16.4 - Prob. 40ECh. 16.4 - Prob. 41ECh. 16.4 - Prob. 42ECh. 16.4 - Prob. 43ECh. 16.4 - Prob. 44ECh. 16.4 - Prob. 45ECh. 16.4 - Prob. 46ECh. 16.4 - Prob. 47ECh. 16.4 - Prob. 48ECh. 16.4 - Prob. 49ECh. 16.4 - Prob. 50ECh. 16.4 - Prob. 51ECh. 16.4 - Prob. 52ECh. 16.4 - Prob. 53ECh. 16.4 - Prob. 54ECh. 16.4 - Prob. 55ECh. 16.4 - Prob. 56ECh. 16.4 - Prob. 57ECh. 16.4 - Prob. 58ECh. 16.4 - Prob. 59ECh. 16.4 - Prob. 60ECh. 16.4 - Prob. 61ECh. 16.4 - Prob. 62ECh. 16.4 - Prob. 63ECh. 16.4 - Prob. 64ECh. 16.4 - Prob. 65ECh. 16.5 - Prob. 66ECh. 16.5 - Prob. 67ECh. 16.5 - Prob. 68ECh. 16.5 - Prob. 69ECh. 16.5 - Prob. 70ECh. 16.5 - Prob. 71ECh. 16.5 - Prob. 72ECh. 16.5 - Prob. 73ECh. 16.5 - Prob. 74ECh. 16.5 - Prob. 75ECh. 16.5 - Prob. 76ECh. 16.5 - Prob. 77ECh. 16.5 - Prob. 78ECh. 16.5 - Prob. 79ECh. 16.5 - Prob. 80ECh. 16.5 - Prob. 81ECh. 16.5 - Prob. 82ECh. 16.5 - Prob. 83ECh. 16.5 - Prob. 84ECh. 16.5 - Prob. 85ECh. 16.5 - Prob. 86ECh. 16.5 - Prob. 87ECh. 16.5 - Prob. 88ECh. 16.5 - Prob. 89ECh. 16.5 - Prob. 90ECh. 16.5 - Prob. 91ECh. 16.5 - Prob. 92ECh. 16.5 - Prob. 93ECh. 16.5 - Prob. 94ECh. 16.5 - Prob. 95ECh. 16.5 - Prob. 96ECh. 16.5 - Prob. 97ECh. 16.5 - Prob. 98ECh. 16.5 - Prob. 99ECh. 16.5 - Prob. 100ECh. 16.6 - Prob. 101ECh. 16.6 - Prob. 102ECh. 16.6 - Prob. 103ECh. 16.6 - Prob. 104ECh. 16.6 - Prob. 105ECh. 16.6 - Prob. 106ECh. 16.6 - Prob. 107ECh. 16.6 - Prob. 108ECh. 16.6 - Prob. 109ECh. 16.6 - Prob. 110ECh. 16.6 - Prob. 111ECh. 16.6 - Prob. 112ECh. 16.6 - Prob. 113ECh. 16.6 - Prob. 114ECh. 16.6 - Prob. 115ECh. 16.6 - Prob. 116ECh. 16.6 - Prob. 117ECh. 16.6 - Prob. 118ECh. 16.A - Prob. 1ECh. 16.A - Prob. 2ECh. 16.A - Prob. 3ECh. 16.A - Prob. 4ECh. 16.A - Prob. 5ECh. 16.A - Prob. 6ECh. 16.A - Prob. 7ECh. 16.A - Prob. 8ECh. 16.A - Prob. 9ECh. 16.A - Prob. 10ECh. 16.A - Prob. 11ECh. 16.A - Prob. 12ECh. 16.A - Prob. 13ECh. 16.A - Prob. 14ECh. 16.A - Prob. 15ECh. 16.A - Prob. 16ECh. 16 - Prob. 119CECh. 16 - Prob. 120CECh. 16 - Prob. 121CECh. 16 - Prob. 122CECh. 16 - Prob. 123CECh. 16 - Prob. 124CECh. 16 - Prob. 125CECh. 16 - Prob. 126CECh. 16 - Prob. 127CECh. 16 - Prob. 128CECh. 16 - Prob. 129CE
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