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MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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
Transcribed Image Text:A researcher interested in explaining the level of foreign reserves for the country of
Barbados estimated the following multiple regression model using yearly data
spanning the period 2001 to 2016:
FR=a+BOIL+yEXP+8FDI
Where FR = yearly foreign reserves ($000's), OIL = annual oil prices, EXP =
yearly total exports ($000's) and FDI = annual foreign direct investment ($000's).
The sample of data was processed using MINITAB and the following is an extract
of the output obtained:
Predictor
Сoef
StDev
t-ratio
p-value
Constant
5491.38
2508.81
2.1888
0.0491
OIL
85.39
18.46
4.626
0.0006
EXP
-377.08
112.19
0.0057
FDI
-396.99
160.66
-2.471
**
S = 2.45
R-sq
96.3%
R-sq (adj)
95.3%
Analysis of Variance
Source
DF
MS
F
Regression
1991.31
663.77
??
Error
12
77.4
6.45
Total
15
a) What is dependent and independent variables?
b) Fully write out the regression equation
c) Fill in the missing values *', ***', '?'and ??'
d) Hence test whether B is significant. Give reasons for your answer.
e) Perform the F Test making sure to state the null and alternative hypothesis.
f) Given an interpretation of the term "R-sq" and comment on its value.
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