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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

  1. 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:

  1. State the multiple regression equation. (1 mark)

ANSWER b {i}:

  1. Interpret the meaning of regression coefficients. (3 marks)

ANSWER b {ii}:

  1. Calculate the adjusted R square and interpret its meaning. (2 marks)

ANSWER b {iii}:

  1. 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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