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A researcher wants to assess the impact of interet rate and exchange rate on S&P/ASX 200 Benchmark Index. So, he gathered a data set from
- A researcher wants to assess the impact of interet rate and exchange rate on S&P/ASX 200 Benchmark Index. So, he gathered a data set from 1992 -2021. The below is the summarizes regression output. However, it is incompete to a certain extend.
SUMMARY OUTPUT | |
Regression Statistics | |
Multiple R | 0.748527 |
R Square | 0.560293 |
Adjusted R Square | A |
Standard Error | 1159.889 |
Observations | 30 |
ANOVA | |||||
df | SS | MS | F | Significance F | |
Regression | 2 | 46285802 | 23142901 | D | 0.0000152 |
Residual | B | 36324234 | C | ||
Total | 29 | 82610035 |
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
Intercept | 6394.028643 | 572.7939949 | 11.16288 | 0.0000000 | 5218.752444 | 7569.304841 |
Inflation Rates | E | 20261.7341 | 1.38328 | 0.1779114 | -13545.99714 | 69601.29154 |
Interest Rates | -63459.36165 | 10886.28913 | -5.82929 | 0.0000033 | -85796.18191 | -41122.5414 |
Based on the above incomplete regression output, you are required to:
- State the multiple regression equation. (1 mark)
ANSWER b {i}:
- Interpret the meaning of regression coefficients. (3 marks)
ANSWER b {ii}:
- Calculate the adjusted R square and interpret its meaning. (2 marks)
ANSWER b {iii}:
- Determine whether there is a significant relationship between dependent variable and the two independent variables at the 5% level of Significance. (2 marks)
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