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1 QUESTION 2 In the macro relation between GDP and FDI, Dr Mudenda obtained the following values from a Stata output: FDI coeficient of 0.45;

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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 coeficient of 0.45; t-statistic of 3; and covariance (GDP, FDD) value of 0.41. In literature, this relationship between GDP and FDI has generally been established to be statisticaly significant. Answer the following questions: 1) Calculate the variance of the FDI variable and explain its implication i) Use the confidence interval approach to test whether FDI's influence on GDP is staticaly significant or not in Dr Mudendad's study. Use 5% level which gives 1.96 critical values it) What is the expected value of the p-values for studies that have been conducted in literature

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