12.79 The following model was fitted to 47 monthly observations in an attempt to explain the difference between certificate of deposit rates and commercial paper rates:

Y = b0 + b1X1 + b2X2 + e where Y = commercial paper certificate of deposit rate less commercial paper rate X1 = commercial paper rate X2 = ratio of loans and investments to capital Use the part of the computer output from the estimated regression shown here to write a report summarizing the findings of this analysis.

R@Square = 0.730 Parameter Estimate Student’s t for H0:

parameter = 0 Std. Error of Estimate Intercept -5.559 -4.14 1.343 X1 0.186 5.64 0.033 X2 0.450 2.08 0.216