CyprusCBC HouseNominal Number ofQuarterPrice IndexGDP Houscholds2005 0168,13765,72548932006 0272,24014.32537512005 Q373,44096,42522912005 0478,24123,62564412007 Q18274105,02543442007 a28954381,52636752007 0392,04491,42635452007 0495,54533.72658682008 Q1101,64522,12654532008 2105,94812,52638882008 3107,74898.32627962008 04104,84776,72639922009 0199.34485,62673372009 02100,14685,72709962009 a100,74723,12721142009 04102,84781,02792542010 01100.04628.32851812010 a299,64850,32850812010 0399,74952,02877592010 0499,1499229198720110198,14743.92985022011 0297,05005,42971432011 0395,94993,63004272011 0494,2SO60,230s0612012 0193,24714.83030492012 0291,34904,93007172012 0390.44932,52971642012 0489,84888,52996842013 0188,44309,52974492013 0286,34642.32956982013 038424589,32946882013 0482,14453,92994112014 Q130,04169,42998582014 0278,44403,72971512014 0377,14489,82997442014 0475,64345,63028832015 Q174,84189,73050422015 0274,54492.53040512015 0374,24576,83036112015 0474,24567,93059112016 Q173,64380,73139192016 0273,24717,53148442016 0373,34874,43157692016 0473,54900,33167012017 Q173,74677,93171492017 0274,2SO37,53175982017 0374,55187,13180492017 0474,85137,33185002018 Q175,24976.63251192018 275,55445,33262432018 Q76,05412,4327370530155173,22018 0476,73285012019 01772330 243 b. Add in the table provided in the spreadsheet a dummy variable that takesthe value of 1in the fourth quarter of each year and show the table withall the datac. Using the data provided in the spreadsheet including the dummy variableyou have created for the fourth quarter of each year run a regression withdependent variable the CBC house price index and independent variablesthe other three variables (Nominal GDP, Number of Households, and thedummy variable for the fourth quarter). Present the typical regressionresults output for this regression produced by Excel.d. Explain what the particular numbers for the following statistics that youpresented in b) mean (no points will be given if you write generaldefinitions without interpreting the particular numbers that you havepresented):a. R-squaredb. The t-statistics of the three independent variablesc. The coefficients of the three independent variablese. Discuss if the signs that you get for the coefficients of each of the threeindependent variables are correct or wrong and whyf. Write the house price index equation that can be constructed on the basisof the estimated constant and the coefficients of the three independentvariablesg. Estimate/forecast the CBC house price index for the first quarter of 2021assuming that the nominal GDP in the first quarter of 2021 was lower by1.3% than its 2019-Q1 value and the number of households was higherthan its 2019-Q1 value by 1.6%. Show and explain clearly thecalculations by which you derived your answer.h. Estimate/forecast the CBC house price index for the fourth quarter of2021 assuming that the nominal GDP in the fourth quarter of 2021 will behigher than its 2019-Q1 value by 2% and that the number of householdswill be higher than its 2019-Q1 value by 3%. Show and explain clearlythe calculations by which you derived your answer.

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