The forecaster in Exercise SW 15.2 (Problem 2) augments her AR(4) model for IP growth to include four lagged value of AR4, where Rų is the interest rate on three-month U.S. Treasury bills (measured in percentage points at an annual rate). (a) The F-statistic on the four lags of ARĮ is 3.91. Do interest rates help predict IP growth? Explain. (b) The researcher also regress AR on a constant, four lags of AR4, and four lags of IP growth. The resulting F-statistic on the four lags of IP growth is 1.48. Does IP growth help to predict interest rate? Explain.
The forecaster in Exercise SW 15.2 (Problem 2) augments her AR(4) model for IP growth to include four lagged value of AR4, where Rų is the interest rate on three-month U.S. Treasury bills (measured in percentage points at an annual rate). (a) The F-statistic on the four lags of ARĮ is 3.91. Do interest rates help predict IP growth? Explain. (b) The researcher also regress AR on a constant, four lags of AR4, and four lags of IP growth. The resulting F-statistic on the four lags of IP growth is 1.48. Does IP growth help to predict interest rate? Explain.
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
Related questions
Question
3
Transcribed Image Text:The forecaster in Exercise SW 15.2 (Problem 2) augments her AR(4) model for IP growth to
include four lagged value of AR4, where Rų is the interest rate on three-month U.S. Treasury bills
(measured in percentage points at an annual rate).
(a) The F-statistic on the four lags of ARĮ is 3.91. Do interest rates help predict IP growth?
Explain.
(b) The researcher also regress ARţ on a constant, four lags of AR4, and four lags of IP growth.
The resulting F-statistic on the four lags of IP growth is 1.48. Does IP growth help to predict
interest rate? Explain.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you