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In the macro relation between GDP and FDI, Dr Mudenda obtained the following values from a Stata output: FDI coefficient of 0.45; t-statistic of 3; and covariance (GDP, FDI) value of 0.41. In literature, this relationship between GDP and FDI has generally been established to be statistically significant. Answer the following questions: i) ii) Calculate the variance of the FDI variable and explain its implication Use the confidence interval approach to test whether FDI's influence on GDP is

In the macro relation between GDP and FDI, Dr Mudenda obtained the following values from a Stata output: FDI coefficient of 0.45; t-statistic of 3; and covariance (GDP, FDI) value of 0.41. In literature, this relationship between GDP and FDI has generally been established to be statistically significant. Answer the following questions: i) ii) Calculate the variance of the FDI variable and explain its implication Use the confidence interval approach to test whether FDI's influence on GDP is

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
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
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QUESTION 2 In the macro relation between GDP and FDI, Dr Mudenda obtained the following values from a Stata output: FDI coefficient of 0.45; t-statistic of 3; and covariance (GDP, FDI) value of 0.41. In literature, this relationship between GDP and FDI has generally been established to be statistically significant. Answer the following questions: i) Calculate the variance of the FDI variable and explain its implication ii) Use the confidence interval approach to test whether FDI's influence on GDP is statically significant or not in Dr Mudenda's study. Use 5% level which gives 1.96 critical values. What is the expected value of the p-values for studies that have been conducted in literature?
Transcribed Image Text:QUESTION 2 In the macro relation between GDP and FDI, Dr Mudenda obtained the following values from a Stata output: FDI coefficient of 0.45; t-statistic of 3; and covariance (GDP, FDI) value of 0.41. In literature, this relationship between GDP and FDI has generally been established to be statistically significant. Answer the following questions: i) Calculate the variance of the FDI variable and explain its implication ii) Use the confidence interval approach to test whether FDI's influence on GDP is statically significant or not in Dr Mudenda's study. Use 5% level which gives 1.96 critical values. What is the expected value of the p-values for studies that have been conducted in literature?
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